Energy

With more than 6% of GDP coming from oil and gas, and 1.8% from the utilities sector, energy is one of the most important components of the Mexican economy. The country’s oil exports have made up a large part of the public budget for several decades. Nonetheless, the decline in production of Petróleos Mexicanos (Pemex), the state-owned oil company, from a peak of roughly 3.4m barrels per day (bpd) to around 2.5m bpd after 2010, combined with oil price volatility, led to a legislative revision in 2013. The energy reform, which opened up the sector to private investment, is expected to have a profound impact on the sector, though in an initial phase, investment in oil and gas exploration and production is likely to be outrun by advancements downstream. Even so, following reform, Mexico is poised to become one of the most dynamic energy markets in the region.

This chapter includes interviews with Pedro Joaquín Coldwell, Minister of Energy; Emilio Lozoya Austin, CEO, Petróleos Mexicanos (Pemex); and Alberto de la Fuente, Managing Director, Shell Mexico.