How much money a year does Mexico make on oil?
I know they produce 3.42 million bbl/day, but how much money does Mexico make on oil a year?
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For Mexico, higher oil prices have a generally, but not completely, positive impact on the country's overall economy. One mitigating factor is that oil export revenues make up less than a tenth of Mexico's total exports, down from more than 70% two decades ago. Increased oil prices also tend to hurt Mexico's main customer for its non-oil exports, the United States, which in recent years have represented a rapidly growing sector of Mexico's economy. Finally, higher oil prices tend to increase inflationary pressures and interest rates in Mexico, while reducing pressures for important economic reforms. On the other hand, despite the fact that Mexican oil export revenues make up only a small percentage of total export revenues, they account for around one-third of government income, meaning that the oil sector plays a major (even disproportionate) role in Mexican economic policy. For 2004, EIA estimates Mexican oil export revenues of about $21 billion, up 27% from 2003, on net oil exports of 1.8 million bbl/d and an average price for Mexican oil -- mainly heavy Maya crude -- of nearly $32 per barrel. For 2005 and 2006, Mexico's oil export revenues are expected to increase, reaching $25 billion by 2006. Mexico's main crude export grade is heavy sour Maya, which is of relatively low quality and therefore fetches a relatively low price on world markets. The other main Mexican export crude is light Isthmus, which sells for around $5-$10 per barrel more than Maya. Mexico's economy is expected to grow at a 4.2% rate in 2005, about the same as the 4.4% growth experienced in 2004. In general, Mexico's economy appears to be recovering from a recession which began in 2001. Mexico's 2005 budget assumes a price for Mexican oil of $27 per barrel, compared to $20 per barrel in the 2004 budget. The assumption for 2004 was around $12 per barrel below the actual estimated price for Mexican oil in that year, resulting in a significant budget surplus. Under Mexican law, oil revenues earned above budgetary assumptions go to fund infrastructure projects in the states, with the rest going to pay down government debt and also back to Pemex, the state oil company. Overall, Pemex sends about 60% of its income to the federal government in royalties and taxes, and is faced with a huge debt burden (over $40 billion) despite its high revenues. Among other things, this means that Pemex does not have a great deal of money to invest in oil exploration. To date, however, Mexico has been unwilling to open the oil sector to private (including foreign) investment.
