Petroleos Mexicanos (Pemex)

Pemex has reported three targets for scope 1 and 2 emissions intensity reductions between 2019 and 2023 for its main business areas:
– 6% reduction for extraction and production of crude oil and gas
– 14% reduction for crude oil processing in refineries
– 22% reduction for the gas processing
However, it was not possible to assess these targets as the company reported the emissions intensity for 2019 and intermediary objectives until 2023 without providing the base year and the corresponding level of emissions.

Despite a decrease of close to 35% in Pemex’s oil and gas production volumes, which was partly due to the company’s inability to invest in new oil and gas extraction technologies, the company’s fuel mix has remained relatively unchanged between 2014 and 2019. The absence of changes in the company’s fuel mix has resulted in a stable trend for the company’s scope 1 and 2 emissions intensity between 2014 and 2019. This is far slower than the company’s 1.5°C pathway which requires an annual reduction of almost 10% in scope 1 and 2 emissions intensity by 2024.

Pemex shows no signs or capability of climate change oversight and does not demonstrate a commitment to decouple management incentives from fossil fuel growth. However, the company demonstrates a more positive performance in terms of its low-carbon transition plan as it has established emissions intensity targets for its oil and gas extraction and processing, and plans to reduce routine and non-routine flaring and to implement energy systems to improve efficiency. The company needs to set up climate change governance and strengthen its low-carbon transition plan by providing clear timelines and quantitative metrics to be able to measure its progress against its stated targets.

The company has not developed business activities to drive its energy mix to low-carbon energy, to reduce energy demand or to develop carbon capture and storage (CCS) and negative emissions technologies (NETs). The company needs to apply its energy expertise to take advantage of new renewable energy technologies and to broaden its business activities to remain profitable in a 1.5°C economy.

Between 2019 and 2023, Pemex plans to reduce the emissions intensity of its oil and gas extraction and production process by 6%, crude oil refining process by 14% and gas processing by 22%.

Pemex intends to reduce both routine flaring, due to lack of infrastructure or operational decisions, and non-routine flaring and to implement energy systems to improve efficiency within its operations.

There is no indication that Pemex is allocating capital or investing in research and development (R&D) to deploy technologies to achieve emissions reduction and mitigate climate change.

Pemex’s oil and gas production plummeted between 2014 and 2019 resulting in a drop of close to 30% in absolute emissions. However, its emissions intensity has remained stable due to unchanged shares of extracted and processed oil and gas products in its sold product mix.

While Pemex plans to decrease the emissions intensity of its main business areas, the absence of long-term emissions reduction targets, detailed plans for developing low-carbon business activities and involvement in serious recent environmental controversies, suggests Pemex is neither ready for nor committed to the low-carbon transition.