Mexico's Oil and Gas Exploration and Production

The scope of Mexico’s 2013–14 energy reform is unprecedented. It touches legal, financial and operational aspects of upstream, midstream and downstream activities for the oil and gas sector. Likewise, it significantly overhauls the institutional scaffolding surrounding the operation and regulation of electricity generation, distribution, transmission and retail. As a result, the Mexican energy industry will move from being vertically integrated, commanded through state entities and rather closed to foreign investment to being an industry that will be governed by principles of competition, and where foreign capital will not only be welcomed but encouraged—even if the state, and the state-owned enterprises, will continue to play a leading role.