Mexico will cut production and “close the valve” for the exploitation of new wells before the price drop

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President Andrés Manuel López Obrador announced that his administration will create a plan to “refine more and import less” crude oil, with the aim to overcome the crisis.

The president of Mexico, Andrés Manuel López Obrador, announced that the country will cut the production of oil, closed wells, and will increase the refining capacity of the plants, to cope with the crisis arising from the fall in oil prices at the international level.

“At the end of this month starts the crop production that is agreed to in the world, and this must have some effect, anyway we are preparing a strategy that consists in refine more crude oil to buy gasoline abroad”, explained the president in his press conference the morning of April 22.

The president made allusion to the agreement reached within the Organization of the Petroleum Exporting Countries (OPEC) on the 10th of April last, in which, Mexico has promised to reduce by 100,000 barrels per day production of crude oil.

Lopez Obrador said that his administration had two hits to help mitigate the crisis. The first, is that the start of exploration in 19 oil fields, and drilling over 200 new wells that are already substantially completed, enables the mexican Government to “close the valve of these wells without loss of pressure”.

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