Mexico energy sector production and policy

Mexico is navigating significant challenges regarding its energy security and production goals. An assessment by the International Institute for Sustainable Development (IISD) highlighted that the government’s strategy to increase domestic oil and gas production faces massive financial and technical hurdles. Achieving these targets could require approximately USD 160 billion in capital expenditure, with nearly USD 110 billion needed from Pemex alone. Experts have warned that developing uncommercial fields might result in net losses of USD 17.4 billion over 15 years, while declining drilling activity and refining infrastructure limitations complicate efforts toward fuel self-sufficiency.

To address sector needs, the Ministry of Economy has implemented new methodologies to promote and measure national content within the hydrocarbons, electricity, and biofuels sectors. Announced by Secretary of Economy Marcelo Ebrard, these tools aim to increase transparency and unify criteria for domestic procurement. A primary feature of the new system is the reduction of certification timelines for the hydrocarbon sector from 18 months to 90 calendar days, intended to ease the administrative burden for investors.

Secretary Ebrard projected that this mechanism could help raise national content levels from 35% to 40%. Alberto Uribe Camacho, Director General of National Content and Energy Sector Promotion, noted that technical opinions issued between October 2024 and October 2026 for hydrocarbon projects involve approximately $152 billion in investments, with an estimated $60.8 billion destined for national content. The government intends to expand these certification mechanisms to other industries, such as the automotive sector, to meet international rules of origin standards.