The Mexican firm has had to adapt to the new environment of low oil price. This process has not been easy for the company; it has faced large budget cuts. Due to the cuts, the company could not meet the goal to achieve a 98% of gas use. Pemex hopes to achieve it in coming years.
Mexico’s oil production represents only a third of its actual potential. With the new explorations that are taking place in Campeche, this state will occupy an important place in the oil industry.
Mexican authorities have talked a lot about the gasoline price liberalization. They planned to begin it in 2018. The government advanced the program to start the liberalization next year. The process will be by regions and begins in February.
Mexican authorities has said that liberalization of fuels market will help to reduce prices in Mexico. It would beneficiate the final consumer, they highlighted. However, Citibanamex believes the opposite.
The main domestic risks faced by the Mexican economy in terms of growth and stability are the fall in oil production and the lack of a strong fiscal adjustment, because the difference between income and expenses is large, warned Bank Of America.
The Federal Government has launched an infrastructure plan to import and transport the natural gas in Mexico. The authorities believe it would help to make a gas market based on free competition, according to a report in Expansión.