petroleos mexicanos

Newly Elected President of Mexico, Lopez Obrador, Vows to Ban Fracking

Read time: 5 mins
Andrés Manuel López Obrador

Andrés Manuel López Obrador, who won the election to become Mexico's President on July 1, stated in a press conference that he will ban the horizontal drilling technique known as hydraulic fracturing (“fracking”) upon assuming the office on December 1.

The announcement would be a devastating blow to the oil and gas industry, which had its eyes set on drilling in Mexico's northern frontier in an area known as the Burgos Basin. The Burgos is a southern extension of the Eagle Ford Shale, a prolific field situated in Texas. 

Trump's Mexico Border Wall Could Be Trojan Horse for Increasing US Oil Exports

Read time: 7 mins
Border fence between USA and Mexico in the Pacific Ocean

On January 25, President Donald Trump acted on his campaign promise to get the ball rolling on building what he often called a “big, beautiful, powerful wall” situated along the U.S.-Mexico border.

At his speech announcing the executive order at the U.S. Department of Homeland Security, Trump cited drugs pouring across the border, increasing crime, and other national security concerns as the rationale for its construction. The main questions center around who will fund it and if Trump can deliver on his promise to have Mexico pay for it, given Mexico's President Enrique Peña Nieto canceling a planned trip to the U.S. to meet with Trump in the aftermath of the announcement. Peña Nieto has said Mexico will not foot the bill.

Answering the question about funding, Trump's press secretary Sean Spicer has revealed that U.S. taxpayers will fork over the money at first, with Mexico paying for it over time through a 20 percent tax on Mexican imports. At least some of those fees, it turns out, could be generated by offering tax incentives to increase U.S. oil exports to Mexico and beyond.

Fracker Aubrey McClendon Signs Deal in Mexico with Firm Led by Former Mexican President

Read time: 4 mins

Aubrey McClendon, former CEO of hydraulic fracturing (“fracking”) giant Chesapeake Energy and current CEO of American Energy Partners (AEP), has signed a joint venture with a private equity firm led* by former Mexico president Vicente Fox.* 

In a joint press release, AEP and EIM (Energy and Infrastructure Mexico) Capital announced a “long-term, landmark partnership to explore the vast exploration and development opportunities offered by Mexico's abundant oil and gas energy resources.” The deal serves as another case study of U.S.-based companies cashing in on the Mexico energy sector privatization policy the U.S. State Department helped make possible under both the Obama Administration and the Bush Administration.

Exclusive: Hillary Clinton State Department Emails, Mexico Energy Reform and the Revolving Door

Read time: 14 mins

Emails released on July 31 by the U.S. State Department reveal more about the origins of energy reform efforts in Mexico. The State Department released them as part of the once-a-month rolling release schedule for emails generated by former U.S. Secretary of State Hillary Clinton, now a Democratic presidential candidate.

Originally stored on a private server, with Clinton and her closest advisors using the server and private accounts, the emails confirm Clinton's State Department helped to break state-owned company Pemex's (Petroleos Mexicanos) oil and gas industry monopoly in Mexico, opening up the country to international oil and gas companies. And two of the Coordinators helping to make it happen, both of whom worked for Clinton, now work in the private sector and stand to gain financially from the energy reforms they helped create.

The appearance of the emails also offers a chance to tell the deeper story of the role the Clinton-led State Department and other powerful actors played in opening up Mexico for international business in the oil and gas sphere. That story begins with a trio.

Days Before Obama Announced CO2 Rule, Exxon Awarded Gulf of Mexico Oil Leases

Read time: 4 mins

On Friday May 30, just a few days before the U.S. Environmental Protection Agency announced details of its carbon rule proposal, the Obama Administration awarded offshore oil leases to ExxonMobil in an area of the Gulf of Mexico potentially containing over 172 million barrels of oil.

The U.S. Department of Interior's (DOI) Bureau of Ocean Energy Management (BOEM) proclaimed in a May 30 press release that the ExxonMobil offshore oil lease is part of “President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production.” 

Secretary of Interior Sally Jewell formerly worked as a petroleum engineer for Mobil, purchased as a wholly-owned subsidiary by Exxon in 1998.

Dubbed a “Private Empire” by investigative reporter Steve Coll, ExxonMobil will now have access to oil and gas in the Alaminos Canyon Area, located 170 miles east of Port Isabel, Texas. Port Isabel borders spring break and tourist hot spot South Padre Island.


Map Credit: U.S. Bureau of Ocean Energy Management

ExxonMobil originally won the three leases at the Western Planning Area Sale 233, held on March 19. BOEM records show ExxonMobil was the only company to participate in the bid and paid over $21.3 million.

"No Turning Back:" Mexico's Looming Fracking and Offshore Oil and Gas Bonanza

Read time: 16 mins

After generations of state control, Mexico’s vast oil and gas reserves will soon open for business to the international market.

In December 2013, Mexico’s Congress voted to break up the longstanding monopoly held by the state-owned oil giant Petroleos Mexicanos — commonly called Pemex — and to open the nation’s oil and gas reserves to foreign companies.

The constitutional reforms appear likely to kickstart a historic hydraulic fracturing (“fracking”) and deepwater offshore oil and gas drilling bonanza off the Gulf of Mexico.

“This reform marks a major breakthrough in Mexico’s economic history only comparable to the signing of the North America Free Trade Agreement (NAFTA) in 1992,” international investing and banking giant Banco Bilbao Vizcaya Argentaria (BBVAwrote in a January 2014 economic analysis.

What does this mean for the oil and gas industry in Mexico? And for the workers and those who live above these oil and gas plays or along the pipeline routes that will funnel the liquids to refineries? And how about for the Earth’s atmosphere?

Can Mexico’s fossil fuel infrastructure handle the boom? Can the country spare the precious freshwater supplies needed for thirsty fracking operations in an era of increasingly severe droughts and drinking water shortages? Can environmental, safety and public health regulations possibly keep up with this industrial boom?

DeSmogBlog will examine all these issues and more as Mexico opens its fossil fuel reserves to international exploitation in the weeks and months ahead. But, first, an overview of the state of play in Mexico’s energy reforms.

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