Mexico's Oil and Gas Sector
The CSIS Energy and National Security and Americas Programs hosted Jesus Reyes Heroles, Executive President of Energe A, Pedro Haas, Director of Advisory Services at Hetco, and Ed Morse, Head of Commodities Research at Citigroup, to discuss the recently introduced reforms to the Mexican Oil and Gas sector, the likely path forward, the implications for PEMEX and the resultant impacts on world oil markets. Ambassador Medina Mora, Mexican Ambassador to the United States, provided introductory remarks. John J. Hamre, President and CEO of CSIS, and Guy Caruso, Senior Adviser at CSIS, moderated.
Despite its position as the world's 9th largest producer of oil and the third-largest in the Western Hemisphere, Mexico has been plagued by consistent declines in production. At the end of 2013, Mexico approved historic legislation which would end the ban on private sector participation in the Mexican energy sector. These reforms promise to address many of the obstacles that have led to the country’s declining oil production. Before the reforms can take effect, however, the Mexican Legislature must pass secondary laws that focus on the fiscal regime, especially important will be the exploration and production contracts.