Mexico Energy

Historically, Mexico is an energy powerhouse, one of the world’s most important crude oil producers, and highly dependent on those exports for economic growth, foreign currency and government revenues. At 5.2% of GDP in 2015, however, oil and gas extraction account for a smaller share of the national economy than at any time in recent history...

While the shift in the political relations with the US has raised new concerns on a number of economical fronts, Mexico’s plans to make the most of its renewable energy resources will benefit both the country itself and its northern neighbour. A significant increase in the contribution of solar and wind into the energy mix is expected in the...

With installed capacity of 2600 MW in wind and 55 MW in solar power plants, Mexico generates around 10% of its energy with non-hydro renewables, but it aims to produce 35% of its energy from clean sources by 2024.

With more than 6% of Mexico’s GDP coming from oil and gas, and 1.8% from the utilities sector, energy is one of the most important components of the economy. Historically, the country has been largely dependent on its oil exports, which have made up a large part of the public budget for several decades. Nonetheless, the decline in production...

Bolstered by its substantial natural resources, Mexico’s gas production and exports are expected to rise in the longer term as a result of new investment triggered by the government’s energy liberalisation policies, and a general recovery of hydrocarbons prices from their low point in 2015.

Since the release of the energy reform in December 2013, the Mexican energy sector has been on the rise. Little by little the rules have been set to turn a closed sector with two state-owned giants – Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (Comisión Federal de Electricidad, CFE) – into a modern-day open market.