PUBLICATION

Oil and Gas Investor

AUTHORS

Ramona Tarta, Camille Nedelec, Yana Stankova, Tom Hurst, Lorenzo Piras, Pauline Hovy

Mexico Oil & Gas 2012 OGI Release

September 04, 2012

Mexico currently finds itself in the economic spotlight, as investors shift their focus away from the BRIC (Brazil, Russia, India, China) countries towards the Spanish-speaking world’s most populous nation. Mexico enjoys significant demographic and geographic advantages, with a young and growing population and the major export markets of the U.S. and Latin America conveniently located on either side. The major financial indicators are promising: a low gross domestic product (GDP) to debt ratio of 35%, steady growth rates since the mid-1990s and an increasingly diversified economy that did not suffer as badly as predicted in the global downturn of 2008. The financial sector is fast becoming one of the country’s assets with that rarest of modern phenomenon—a stable banking system. Mexican banks have an average capitalization rate of 15%, almost double the minimum regulatory requirement of 8%. Relatively cheap labor costs have resulted in a national manufacturing boom and stimulated the export of goods throughout the world. Yet for all this diversification, the centerpiece of the economy remains the production of oil and the company that controls it: Pemex.

RELATED INTERVIEWS MORE INTERVIEWS

"The energy transition can only be funded by big oil, as they are the only players who can balance the low returns of renewables projects with their high earning fossil fuel projects."
"Every oilfield declines without continued investment, so new owners must push hard to restore and increase output. This means significant opportunities for contractors like us in the form of asset upgrades and new projects."
Petromar speaks of the outlook for Angola’s oil and gas service industry for the next two years.
"While in other markets, SPIE often primarily provides technical assistance and workforce supply, our Nigerian operations have evolved into a fully integrated service provider."

RECENT PUBLICATIONS

Mexico Chemicals 2025 CW Release

Mexico's chemical industry faces challenges in securing a reliable feedstock supply and maintaining global competitiveness. A shift towards sustainable energy and local production could provide long-term growth opportunities, and some sectors are booming, including Mexico's dynamic chemical distribution market.

MORE PREVIOUSLY PUBLISHED

SUBSCRIBE TO OUR NEWSLETTER