Mexico Oil And Gas News

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In 2010, Mexico was the seventh-largest oil producer in the world, and the third-largest in the Western Hemisphere. State-owned Petroleos Mexicanos (Pemex) is one of the largest oil companies in the world. However, oil production has decreased in recent years as production at the giant Cantarell field continues to decline.
The oil sector is a crucial component of Mexico's economy: while its relative importance to the general Mexican economy has declined in the long term, the oil sector still generated 14 percent of the country's export earnings in 2010, according to Mexico's central bank. More importantly, the government relies upon earnings from the oil industry (including taxes and direct payments from Pemex) for 32 percent of total government revenues. Therefore, any decline in oil production has a direct effect upon the country's overall fiscal balance.
In early 2011, Mexico held licensing rounds for performance-based contracts on oil blocks allowing participation to foreign oil companies for the first time since the nationalization of the oil industry in 1938. The foreign firms will have no ownership rights over any oil they produce, but they are expected to provide Mexican fields with badly needed technological improvements.

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page revision: 3, last edited: 27 Apr 2012 12:11

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