Establishing a Vision for Growth in Mexico’s Oil & Gas Sector
The pandemic and the current government administration have not diminished the investment and growth potential of the oil and gas industry, but they have reshuffled where those opportunities can be found. While the most obvious openings for investment used to be focused on bidding rounds and the entrance of new operators into the market, the recentralization of PEMEX has resulted in a new focus on large upstream supply contracts and networks of service providers.
The industry demonstrated that various growth avenues turn out impervious to previously unthinkable obstacles, such as the pandemic. Mexico’s oil and gas activities have proven to be reliable and resilient homes of capital interests, regardless of the degree of protectionism enforced over them. In fact, government policies have the potential to motivate as much new investment, if not more than what amount might end up being held back.
Therefore, the top-down perspective of high ranking government officials is necessary to identify how a regulatory landscape focused on sovereignty and public ownership can best find synergies with private interests and the ambitions of the market. The oil and gas industry, not just in Mexico but at a global level, has always existed and thrived within this delicate balance between public and private ownership. Mexico’s current context is no different and just as ripe with opportunities as before.
With this in mind, Mexico Oil & Gas Summit 2022 will be inaugurated with an opening address titled Growth Vision for Mexico’s Oil & Gas Industry, to be delivered by a high-ranking member of energy ministry SENER. The goal of these opening remarks will be to properly contextualize the new industry environment and how capital can be best distributed along its value chain. The perspective of the average investor on the industry can still be as bullish as ever, providing it is zeroed in on the right subsectors and trends. This is especially true when considering that more operators are entering productive phases, which will require new packages of field development and infrastructure design contracts. This work will have to be done in conjunction with the ambitions of PEMEX, whose standing debt is slowly being reduced to make way for new items in its budgets and its demanding drilling schedules.