THE FUTURE OF OIL IN MEXICO
A new Baker Institute-Oxford study
The energy industry plays an important role in the Mexican economy, and energy trade is a major component to the U.S.-Mexico relationship. The Mexican government relies on the oil industry for 35 percent of total government revenues, including taxes and direct payments from Petróleos Mexicanos (Pemex), the state oil company. Mexico is the third-largest foreign crude oil supplier to the United States. However, with declining production and rising demand, Mexico could become a net oil importer in the coming decade. President Calderón pushed for energy sector reform in Mexico, but more reforms will be needed for Mexico to reverse its current path toward importer status. To examine these issues, this study identifies the dynamics of the political trends in Mexico that will impact future energy policy. Through this project, the Baker Institute seeks to promote a better understanding of the challenges facing Mexico’s oil sector and to enhance the debate among policymakers, the media and industry on these important issues.