The future of oil and natural gas production in Mexico is of importance for both Mexico’s economic growth, as well as for U.S. energy security, a key congressional interest. Mexico is a top trade partner and the 3rd largest crude oil supplier to the United States. Mexico’s state oil company, Petroleos Mexicanos (Pemex) remains an important source of government revenue even as it is struggling to counter declining oil production and reserves. Due to an inability to meet rising demand, Mexico has also significantly increased natural gas imports from the United States. Still, gas shortages have hindered the country’s economic performance. This book provides an overview of Pemex and the content and prospects for Mexico’s energy reforms, before discussing specific issues facing Mexico’s oil and gas industry. It then examines the U.S.-Mexico energy relationship through the lenses of trade and energy cooperation. It concludes by suggesting several oversight issues for Congress related to what the enactment of energy reform might portend for Mexico’s economic development, the U.S. energy matrix, and bilateral or North American energy cooperation.
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