ASSESSMENTS

Big Oil Sees Untapped Potential in Mexico

Feb 2, 2018 | 00:14 GMT

Major international oil companies know that the next Mexican president will be limited in any energy reform rollback.

Riot policemen stand behind a metal barrier while supporters of candidate Andres Manuel Lopez Obrador (on poster) rally in Mexico City.

(YURI CORTEZ/AFP/Getty Images)

Highlights

Mexico's energy reforms have begun to pay off, attracting major international companies interested in potentially lucrative deep-water oil opportunities.
Populist presidential candidate Andres Manuel Lopez Obrador has promised to roll back aspects of Mexico's energy reform, but his ability to do so will be limited by institutional and political constraints.
Mexico's latest round of bidding for new oil exploration and production blocks suggests international energy companies are hardly fazed by the limited threat of Lopez Obrador's platform.

Despite the looming possibility of a populist presidential candidate winning the high office in Mexico, "Big Oil" is betting on the longevity of energy reform in the country. Andres Manuel Lopez Obrador, who currently leads the presidential election polls, is promising to reverse aspects of the country's energy reforms. But from the perspective of the major international oil companies, a Lopez Obrador presidency would be little more than than a six-year nuisance, because he lacks the ability to rewrite the legal fundamentals in a way to last beyond his term....

Keep Reading

Proceed to sign up

Already have an account?