A Look at the Future of the Mexican Petroleum Industry after Energy Reform
The 2013 Constitutional Reform in Mexico set the nation’s energy industry on a new course by opening the country to private investment, thus ending the 75-year monopoly of Pemex, the state-owned oil company. With hydrocarbon production in decline and demand for energy projected to rise, Mexico acted out of necessity to legalize outside participation in the oil and gas industry and to boost investment and growth in the energy industry as a whole. Today, private companies recognize the opportunity for investment in Mexico, particularly in the petroleum sector where years of under investment upstream to downstream have left the nation in a precarious situation to meet growing petroleum demand.
With recent energy reforms, investment is beginning to flow into the country and there is hope for a renewal in petroleum production to meet the growing consumption in the expanding Mexican economy.
About the Author
The Mexico Institute seeks to improve understanding, communication, and cooperation between Mexico and the United States by promoting original research, encouraging public discussion, and proposing policy options for enhancing the bilateral relationship. A binational Advisory Board, chaired by Luis Téllez and Earl Anthony Wayne, oversees the work of the Mexico Institute. Read more