Naki Mendoza is director of the energy program at the Council of the Americas. This article was originally published in the FT’s beyondbrics.
March 18, 1938 lives on in Mexican history as the day that President Lázaro Cárdenas nationalized the assets of foreign oil companies and, in doing so, ushered in a 75-year monopoly on the country’s hydrocarbon riches by state-owned Petróleos Mexicanos (Pemex).
July 12, 2017 might well go down as the day that the international oil industry firmly re-entrenched itself in Mexico.
While the government has drastically overhauled the sector to allow foreign investment, news of enormous offshore discoveries on July 12 are, to date, the largest and most significant manifestations of those reforms.
Their impacts are likely to ripple across Mexican industry and boost the country’s already strong reputation among energy investors. At the same time, they are a sharp reminder of the benefits of open energy investments as Mexico and the US—along with Canada—prepare to renegotiate their terms of trade. See more here.