Mexico Votes In Energy Laws Oil Production Expected to Rise

Mexico’s Congress has approved sweeping changes to the country’s energy industry which will see private oil contracts awarded in the country for the first time since 1938.

New laws voted in on Wednesday will open the market to foreign oil firms.

As a result, state-owned energy group Pemex will lose the monopoly it has held since nationalisation.

President Enrique Pena Nieto has made energy reform the cornerstone of his administration.

He expects the changes will boost production back to 2004 levels by 2025.

Crumbling infrastructure, bureaucracy and corruption have pared Mexican production from 3.6 million barrels a day in 2004 to just 2.5 million.

The ending of Pemex’s monopoly required changes to the constitution, signed into law last year.

The reforms are expected to attract billions of dollars of investment into the country, the world’s ninth-largest oil producer.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza