Critical Challenges, Opportunities On the Horizon for Mexico

Mexico’s oil and gas sector faces critical challenges and opportunities as the country navigates its energy transition, refining losses, and evolving policy landscape, according to industry experts at the announcement of Expo Oil and Gas México 2025.

Ricardo Ortega, CEO, Grupo Alliance, highlights Mexico’s strategic position in the global energy transition, particularly as Donald Trump’s administration could prioritize fossil fuel production. Despite possible shifts in US energy policy, Ortega says that Mexico has the potential to lead its own energy transition.

The country has seen losses in the refining sector and needs to shift toward petrochemical production, says Juan Acra, President, Mexican Energy Council (COMENER). Mexico consumes about US$40 billion in chemical products and services annually, ranking among the 15 largest petrochemical consumers globally.

COMENER reports that reactivating Mexico’s petrochemical industry could optimize hydrocarbon use and reverse refinery losses. Several factors, including Mexico’s strategic location and its growing role in nearshoring, support this shift. Transportation costs from Mexico are about 50% lower and 80% faster compared to Asian markets, making the country an attractive hub for industrial activity in Latin America and the United States.

Natural gas access is expected to further benefit petrochemical production, though the sector needs significant investments to convert existing refineries, says Acra. "Our refineries generate net operating losses of hundreds of billions of pesos. Decisions must be made to reverse this and develop an industry that generates profits like any other business," Acra adds.

Experts also addressed the importance of strengthening Mexico’s domestic supplier network to support energy sector growth. Acra says that COMENER is in discussions with the Ministry of Economy to propose an initiative aimed at bolstering local suppliers.

Carlos García Basto, Director, Energy Agency of the State of Campeche, says that while Campeche remains a key oil-producing region, balancing this role with energy transition efforts is a challenge. He also pointed to delays in PEMEX payments, which impacted the industry in 2024.

The sector needs a robust supplier network, says Alicia Zazueta Payán, President, AMPES. Meanwhile, Cristel Domínguez, Representative, Women’s Energy Network México, raises concerns about Mexico’s secondary energy laws, which could redefine regulations for PEMEX and CFE. 

The Expo Oil and Gas México 2025, scheduled for Aug. 27-29 at Expo Santa Fe in Mexico City, will provide a platform for industry leaders to address these challenges and opportunities. The event will focus on three main themes: the Mexico-US energy relationship, upcoming secondary energy laws, and Mexico’s energy transition.

"The Expo seeks to define Mexico’s energy future by driving strategic alliances and key business opportunities in this dynamic sector," says Ortega.