Mexico's Upstream Commercial Frameworks: Consequences and Implications
Article from: OGEL 3 (2012), in OGEL Ten Years Special Issue: Internationalisation of Energy Law
Abstract
In the Western Hemisphere only Mexico prohibits private equity investment in upstream oil and gas exploration, development and production. Oil production and exports have declined steadily since 2005. Gas production is insufficient to meet domestic demand and Mexico continues to be a net natural gas importer. As a result of this unsatisfactory production performance, the Mexican government enacted reforms of national oil company Petroleos Mexicanos or Pemex and the Mexican hydrocarbon sector in 2008 after seven months of debate. However, the constitutional prohibition ...