Mexico Energy Reforms Present Risks and Opportunities

Mexico has taken significant steps to reform its energy industry, as the government attempts to capitalize on the country’s rich natural resource reserves. Announced in August 2014, these reforms established a more transparent legal framework for Mexico’s oil and gas sector and provided a clear pathway for foreign and domestic players to pursue exploration and production.

Despite prolonged depressed commodity prices, Mexico’s energy reform agenda is attracting foreign and domestic investors, as they take a long-term approach to the opportunities arising from the government’s actions.

As the first round of land-block auctions for exploration and production are announced, companies and consortiums are quickly turning their attention to the risks associated with exploration and production — arguably the riskiest and costliest phase of any oil and gas Greenfield projects.

Our report, Mexico Energy Reforms: Risks and Opportunities, provides a brief overview of the reforms, and details the 12 risks that companies and consortiums should consider as they prepare to start exploration and production activities in Mexico.