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Mexico's Energy Industry


in figures

Oil reserves6.1 billion barrels

Oil production1.93 million bopd

Gas reserves200 bcm

Gas production29.2 bcm

Mexico: Latin America's New Energy Powerhouse

The implementation of the Energy Reform Act in August 2014 marked a new era not only for the Mexico’s domestic hydrocarbons industry, but also for the country itself. Among the changes resulting from the act are the restructuring of NOC Pemex to increase efficiency and the opening of oil and gas value chain from E&P to retail to private foreign and domestic companies. Since 2015, two four-tender rounds have taken place, as well as the first auction of Round 3.1. Three more tenders were scheduled for 2018, but have been postponed. Additionally, in 2016, Pemex began farming out some of its more complex acreage to private companies with greater technological expertise and financial resources.

In addition to the reform, one of the biggest drivers of change in Mexico’s energy industry is growing demand for natural gas. Consumption is expected to rise by 64% between 2013 and 2027. Since 2010, Mexico’s gas imports from the USA have grown by 300%, and the US Energy Information Administration predicts they will double by 2019. Demand is outpacing storage and distribution capacity, a problem that spurred the government to lay out the Five-Year National Integrated Natural Gas Transportation and Storage Plan 2015-2019 which aimed to expand the natural gas pipeline network.

Despite being a crude oil exporter, Mexico has been a net fuel importer since 1998.  Pemex has taken steps to stem losses downstream, by partnering with private investors for upgrades and expansions at several of its ageing refineries. Additionally, the country’s new president is promoting a project to build a new mega-refinery in Tabasco. The liberalisation of fuel prices across the country was completed in November 30, 2017. That, coupled with fuel demand growth, has created an environment in which local and foreign, small and large fuel retailers can prosper. In March 2017, BP became the first private foreign fuel retailer in the Mexican market. Since then, several others have entered the sector.

Subsea7 wins contract for Talos Energy’s Sunspear prospect
USA - April 12, 2024

Subsea7 wins contract for a subsea tie-back in Talos Energy’s Sunspear development in the Gulf of Mexico.

Transocean wins $195-million drillship contract in US Gulf
USA - April 01, 2024

Transocean has won a USD 195-million drillship contract extension for an independent operator in the US Gulf of Mexico.

CNOOC joins fray in ExxonMobil-Chevron Guyana dispute
Guyana - March 21, 2024

CNOOC has filed for arbitration to assert its right to first refusal on Hess' stake in Guyana's Stabroek block, joining…

Subsea7 wins “large” contract offshore Mexico
Mexico - March 14, 2024

Subsea7 has won a contract from Woodside Energy to provide subsea installation services for the Trion field, Mexico's first…

ExxonMobil arbitration bid targets Chevron-Hess merger
Guyana - March 06, 2024

ExxonMobil has filed for arbitration to protect its right of first refusal in Guyana’s Stabroek block.

Pemex to invest USD 400 million in exploration offshore Veracruz
Mexico - February 29, 2024

Mexican state-owned oil company Pemex is set to invest more than USD 400 million towards exploration in the Holok-Han deepwater…




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