Oil and Reform a la Mexicana

Mexico’s recent Energy Reform sent a shock to upend its seventy-five-year-old petroleum monopoly, hoping to cure the ailing industry with injections of foreign investment. Mexico sought to undo a history of state control overnight, but present challenges show that history cannot be undone so easily. This Note addresses the practical significance of the Reform within the context of Mexico’s tumultuous oil history. This context aids in defining the cause and contours of post-Reform challenges to measure future expectations accordingly.

The Reform was a necessary step that required herculean efforts to effectuate; however, future growth will require sustained efforts. Long-term economic stability depends on Mexico’s ability to minimize investor uncertainty and provide Pemex with the latitude to make strategic business decisions without the hindrance of political influence.