Mexico reopened its energy market to outside producers in August for the first time in more than 75 years. Until now, private companies could only serve as contractors to the national hydrocarbon or electricity monopolies.
Mexicans formerly took pride in keeping a major natural resource in national hands. Pemex, the state petroleum monopoly, provided almost a third of federal revenues. Yet Pemex’s production began dropping in the mid-1990s. In 2013, the U.S. Energy Information Administration (EIA) predicted (PDF) that by 2025 Mexican oil production would plunge by more than 50 percent from 2010 levels, despite the presence of the equivalent of 450 billion barrels of oil in Mexico, on par with Saudi Arabia’s resources. On August 25, citing the reforms, the EIA predicted a turnaround in the decline over the next few years and a return to growth by 2025. Mexico is now on the verge of an oil and gas boom. Continue reading Mexico Is Poised for Energy Boom