Real Estate Investment & News | Topic | pemex | Page 1

Many of the world’s most respected businesses and news organizations know that Mexico offers a wealth of opportunities, from its growing manufacturing sector to its booming tourism industry and rising real estate prices. As one of our clients recently said,“What’s not to love about Mexico?”

Although the major long-term boost that’s on the way from Mexico’s oil industry following the implementation of historic reforms this summer is most likely going to come from new deepwater fields in the Gulf, it could be up to 10 years before companies actually start pumping in the newly charted areas, which means the immediate spike in production will come from existing onshore fields in the same region.

The U.S. and Mexico function as one of each other’s largest trading partners in a budding and prosperous relationship that is increasingly intertwined. This connection – not to mention the enormous potential for future growth – was made even stronger this year when Mexican President Enrique Peña Nieto signed a slew of historic energy reforms into law.

This August Mexican President Enrique Pena Nieto signed Mexico’s new energy reforms package into law, which ended a 76-year monopoly over the nation’s vast oil and gas resources by state-owned Petroleos Mexicanos (PEMEX). The move opens Mexico’s energy sector to private capital from both domestic and foreign sources, permitting global oil majors to operate here for the first time since energy assets were nationalized in 1938.

For the first time in more than 70 years,Mexico’s energy sector is allowing private and foreign firms to sign production and profit sharing deals in the oil, gas and electricity industries. Previously managed solely by Pemex, Mexico’s state-owned oil and gas giant, the change is quickly opening up a whole new realm of possibilities that could ultimately lead to a new era of energy independence for North America.

In a historic move that promises to change the landscape of North America’s energy sector, the Mexican senate has approved the final piece of legislation needed to implement historic constitutional reforms that will open the nation’s oil and gas industry to outside investment.

Mexico is quickly moving to capitalize on its substantial and largely untapped energy resources as the government works to hammer out the final details surrounding new rules that will apply to outside investors in this sector. According to a recent report by Reuters,Mexico plans to eventually make it mandatory for all investing bodies and corporations to use a certain amount of labor and materials from local and national Mexican firms and businesses, but the rules will allow up to ten years for compliance.

“All Eyes On Mexico,” reads the latest headline from Forbes covering Mexico’s landmark energy reform legislation, which passed in late 2013 and will be finalized over the next two weeks as lawmakers release details surrounding how the reforms will be implemented.

Mexico is quickly becoming a hotspot for international investors and financial institutions worldwide following a slew of historic reforms in late 2013 that opened up Mexico’s national oil company (PEMEX) to foreign investment in its considerable oil and gas reserves for the first time in 76 years. 

Last year’s historic energy reform has opened Mexico’s national oil company (PEMEX) to outside investment and foreign partnerships for the first time in more than 75 years. According to the International Business Times (IBT), this progressive move will allow major international companies to gain access to Mexico’s largely unexploited deep-sea oil fields.

Mexico’s state-owned oil company PEMEX has announced that it will invest nearly $28 billion in 2014, a historic figure that marks the largest annual investment in the firm’s history. The majority of the new investment money will reportedly be used to expand exploration and production of crude oil and gas.

There has been a flurry of interest in Mexico’s substantial oil reserves following the passing of historic reforms in late 2013, which now permit foreign and private companies to invest in the nation’s energy sector, and some of the world’s largest oil and gas companies are making moves to get in on the action.

Fox News reports that Mexico plans to evaluate its non-conventional oil and gas potential, committing to invest more than $242 million in the project. State of the art technology will reportedly be used to assess the nation’s prospective resources, according to Mexico’s Energy Secretariat.

According to a report by Bloomberg Businessweek, Mexico’s incoming President Enrique Peña Nieto “will be able to bring together members of his party and the opposition to pass laws opening up the oil industry to private investment.”  The report follows a statement to that effect made by Peña Nieto’s top economic advisor, Luis Videgaray.