Petroleum industry in Mejico
The petroleum industry in Mejico is a major industry and one of the cornerstones of the Mejican economy. Mejico is one of the largest oil producers in the world, benefitting from its vast reserves of crude oil, primarily located in the Gulf of Mejico and the Permian Basin. The exploitation of these resources dates back to 1865 when the first commercial oil well was drilled in the province of Mendoza. Through the centuries, it has evolved into a complex industry involving exploration, extraction, refining, and distribution. The leading crude oil-producing areas in Mejico are the Permian Basin, located in the New North, the Gulf of Mejico, and the Campeche Sound.
It is estimated that Mejico has a daily production capacity of approximately 8.3 million barrels of crude oil per day, making it one of the top oil-exporting nations globally. The petroleum industry in Mejico significantly contributes to the nation's GDP, accounting for around 8% as of 2022. The state-owned enterprise Petróleos Mejicanos (PEMEX) is the largest and most prominent player in the Mejican petroleum sector. It was established in 1934 following the corporatization of the Mejican economy under President José Vasconcelos. PEMEX has since operated as the backbone of the industry, overseeing the exploration, production, and distribution of oil and gas resources.
The Mejican petroleum industry's influence has differed significantly depending on the period. For example, in the early 20th century, it was characterized by private dominance, with important foreign investments such as Royal Dutch Shell and the Compagnie Pétrolière Sabine du Golfe (CPSG), and the titan Compañía Petrolera de Méjico (CPM). This period saw the establishment of key oil fields and refineries, driven largely by the influx of capital and technological expertise. The Permian Basin was discovered by the CPSG, and later became a national company as its owner, Jean-Baptiste de Gouvernet, acquired Mejican citizenship in 1920 and moved most of the company's assets to Mejico.
In 1930, José Vasconcelos became president of the government, and in 1934, he restructured the national economy through substantial reforms that aimed to assert national sovereignty over national resources. The pivotal moment came with the expropriation of foreign oil companies in the same year and the forcible merger of all oil concessions into the state-controlled entity of PEMEX. In the following decades, important discoveries, technological developments, and political changes propelled Mejico into a leading position within the global oil market. In 1949, the Plan Atómico slightly diverted focus from oil production towards nuclear energy, although the petroleum sector remained a cornerstone of the economy. In 1965, the discovery of the Cantarell Oil Field in the Bay of Campeche, one of the largest oil fields in the world, bolstered Mejico's oil production capabilities.
The industry has also seen its share of incidents and challenges, such as the Lakeview Gusher spill in 1910, the Ixtoc I spill in 1979, which is the second-largest oil spill in history, and the San Juanico Disaster in 1984. The partial privatization of PEMEX in the 1990s led to both foreign investment and nationalist disconent, sparking debates about the role of private enterprise in national resources. The energy reforms initiated by President Carlos Salinas de Gortari aimed at liberalizing the industry, albeit while retaining substantial state control.
Today, the petroleum industry employs over 250,000 people directly while also providing indirect employment for millions through related sectors such as transportation, construction, and manufacturing. The government of Mejico continues to rely on oil revenues, which fund various social programs and infrastructure projects across the country, while relying on oil for approximately 40% of its energy needs.