Up to 2014, the oil and gas sector in Mexico was wholly controlled by PEMEX. The lack of competitive incentives stalled investment, causing a continued decline in production and reserves since the beginning of the 2000s. From 2000 to 2013 crude oil production fell by 16.8%, which had major implications on earnings for the federal government and led to higher hydrocarbon imports. To counter these trends, in 2013 the country enacted the energy reform, a constitutional amendment that completely overhauled the regulatory framework of the sector, opening it to private participation and foreign investment. Five years on from the reform, private ownership is still at an incipient stage even though more than 100 exploration and production contracts have been awarded to local and international private players through three tenders, comprising a total of eight bidding sessions starting in 2015. Some of the awardees have made important discoveries since, but few have started commercial operations and it is hard to determine when they will begin to make a difference in total production. Furthermore, the sector’s future under Mexico’s new president, Andres Manuel Lopez Obrador, remains unclear. Some members of his cabinet have been critical of the 2013 energy reform, calling upon the government to revise the awarded contracts, whilst promising to respect the awarded contracts if no unlawfulness is found, and even promote more bidding rounds.

01 EXECUTIVE SUMMARY 

02 SECTOR IN FOCUS 

03 COMPETITIVE LANDSCAPE 

04 COMPANIES IN FOCUS

05 REGULATORY ENVIRONMENT 

06 OIL 

07 NATURAL GAS 

08 RETAIL CHANNELS