Mexico has officially removed its monopoly on its oil and gas industry, knocking down the 75-year-old barrier to foreign investment in its oil fields.
Six months have now passed since Mexico removed a 75 year long monopoly held by the state company, Petroleos Mexicanos (Pemex), for the production of oil and gas in the country. The change will open the doors to service companies and exploration and production companies, now finally able to conduct their own operations in Mexico for the first time since 1938.
Over the past 10 years, the country's oil and gas output has fallen by 25 percent, a significant drop in comparison to other areas where such monopolies exist. The Cantarell field, once the world's second largest field, which contributed 2.1 million barrels per day to Mexican output in 2003, nose-dived to 400,000 daily barrels last year. By comparison, companies operating in Texas, where no such monopoly has existed, have increased their oil and gas output by 150 percent during the same period.
Eric Doyle, Regional Director – Europe at Aquaterra Energy, said: “The end of the 75 year monopoly on the Mexican oil trade is excellent news for companies in the oil and gas industry across the world and the benefits will be seen across the entire supply chain.
“By opening up the industry to more competition, Mexico has begun a new era for its oil and gas industry; exploration and production companies will now finally be able to benefit from the offshore solutions and knowledge that companies like Aquaterra Energy provides. Our high quality riser analysis allows us to accurately assess the needs of our clients, allowing safe delivery and installation of our high quality offshore while reducing installation and operational costs.”