Center for Latin American and Caribbean Studies

The decline in oil reserves and in output from the supergiant Cantarell oilfield sets new challenges for Mexico’s oil industry. Wide-ranging reforms are required, including ambitious new plans for Gulf of Mexico deepwater development. The Calderón government is giving priority to new infrastructure and to increasing Pemex’s capital expenditures, but it will be important for state-owned Petróleos Mexicanos (Pemex) to restructure thoroughly and for the Mexican energy industry to meet a wide range of challenges in order to supply domestic needs adequately and have a sustainable, competitive future.