Mexico nationalized their oil industry in the 1930s, essentially giving private foreign companies as well as their technology and capital the ol’ heave-ho, and state-owned Pemex has dominated the oil-and-gas ever since. The oil giant is Mexico’s largest company by sales and provides revenue that accounts for more than a third of Mexico’s budget. Chronic mismanagement and technical deficiencies have lately contributed to its decline, however, and experts have predicted that the company will lose its export power if it doesn’t make some major changes, and soon.
President Enrique Peña Nieto, elected last July, is looking to do just that, via the WSJ:
In the past two decades, Mexico has allowed private investment in some areas, such as natural gas storage and distribution, and electricity generation, but Pemex has kept a firm grip on the oil and gas sector. Many experts say that unless Mexico opens up its oil exploration to private firms, it is likely to cease exporting major quantities of oil by the end of 2018.