by Mark P. Mills
April 10, 2014
Few think of Mexico in the same terms as Saudi Arabia, despite Mexico’s similar quantities of hydrocarbon resources. This perception reflects the decade-long decline in Mexico’s oil and gas production. Yet, President Enrique Peña Nieto has laid the groundwork for radical political and regulatory reform that can unlock the nation’s vast hydrocarbon wealth. Reforms already enacted and others pending allow, for the first time since the 1930s, private and foreign investment in Mexico’s oil and gas fields. This is intended to lead to an influx of both capital and technology that will boost domestic production, revitalizing Mexico’s economy and setting the stage for a North America as a rival to the Middle East and Russia in world energy markets. This outcome is not inevitable, but certain factors suggest that future progress could be surprising and fast.