Mexico Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in mexico, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Oil and Gas
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Overview

Mexico remains one of the largest oil producers in the world, averaging 1.48 million barrels per day in 2024 and ranking fourth in the Americas after the United States, Canada, and Brazil. Hydrocarbons remain a cornerstone of Mexico’s economy, contributing roughly 30 percent of federal revenues and making the sector a key source of fiscal stability. The U.S.–Mexico energy trade is highly integrated: the United States imports over 400,000 barrels per day of Mexican heavy crude while exporting more than 1.9 million barrels per day of refined petroleum products to Mexico, covering over 70 percent of Mexico’s domestic gasoline, diesel, and jet fuel consumption.

Mexico retains substantial proven reserves and has significant untapped potential, particularly in deepwater and unconventional resources. The 2013 energy reform ended the 75-year monopoly on oil and gas exploration and production and allowed private and foreign investment, opening opportunities across upstream, midstream, and downstream segments. Between 2015 and 2018, over 100 contracts were awarded to private operators under competitive bid rounds, and U.S. firms such as Chevron, ExxonMobil, and Talos Energy remain active in exploration and development. Although new rounds have not been announced by the current administration, these legacy contracts continue to generate demand for technology, equipment, and services.

Pemex, the state-owned oil company, remains central to the industry and operates through Pemex Exploration and Production and Pemex Industrial Transformation. The Government of Mexico (GOM) continues to prioritize Pemex’s role by investing in the nearly completed USD 12 billion Dos Bocas refinery and the modernization of six existing refineries. As of 2025, Pemex Procurement International (PPI) has registered over 9,000 suppliers, more than 70 percent of which are U.S. firms, reflecting the deep integration of U.S. and Mexican supply chains.

Mexico’s upstream oil and gas segment remains the largest driver of foreign investment in the sector. Private operators that secured blocks during the 2015–2018 bid rounds are continuing with exploration and development activities, including drilling campaigns, seismic studies, and construction of offshore platforms in the Gulf of America. Pemex’s 2025–2030 investment plan calls for the development of 18 new fields, construction of 15 platforms, and drilling in existing shallow-water and onshore fields, which will sustain demand for rigs, derricks, subsea systems, and well services. U.S. companies are key participants and are actively seeking technology, equipment, and service partners to help meet production schedules and improve efficiency in both deepwater and onshore operations.

Midstream and downstream projects present major prospects for U.S. suppliers of equipment, engineering, and EPC services. Mexico plans to install more than 14 new pipelines totaling 175 kilometers, build and expand storage terminals, and modernize its refining network, including six existing refineries and the nearly completed Dos Bocas facility in Tabasco. These projects require pumps, compressors, control systems, and construction services, and are subject to local content requirements of 25 percent (rising to 35 percent by 2025). U.S. firms with competitive technology and local partnerships are well positioned to participate, particularly in projects to upgrade desulfurization capacity and meet Mexico’s growing demand for cleaner fuels.

Mexico’s natural gas market is expanding as gas continues to replace fuel oil in power generation. With 17 trillion cubic feet of proven reserves and 545 trillion cubic feet of technically recoverable shale gas resources, the country has significant potential, though shale development remains stalled by policy restrictions. Near term opportunities are focused on expanding import infrastructure: additional pipeline connections with the United States, new LNG import terminals, and storage facilities to improve system reliability. Mexico’s state-run operator of the country’s natural gas pipeline and storage system, the National Center for Natural Gas Control (Centro Nacional de Control del Gas Natural or CENAGAS) and private developers have issued tenders for transmission, distribution, and storage projects, opening opportunities for U.S. suppliers of pipeline construction services, metering equipment, compressors, and engineering solutions.

Despite a changing regulatory and security landscape to counter illegal fuel smuggling (“huachicol”), and a challenging price cap at gas stations that limits potential profitability at retail stations, Mexico’s retail fuel market continues to liberalize in other ways, with over 11,000 gasoline stations requiring upgrades or replacement. Opportunities exist for U.S. suppliers of logistics solutions, metering systems, point-of-sale technology, and forecourt equipment, as well as for investors interested in building new service stations or entering joint ventures with local distributors. The ongoing modernization of Mexico’s fuel retail infrastructure, combined with increased competition among brands, is creating demand for reliable supply chain solutions, marketing expertise, and environmental compliance systems that can meet evolving regulatory requirements.

Leading Sub-sectors

  • Upstream exploration and production equipment and services
  • Drilling rigs, derricks, and Christmas tree assemblies
  • Field gathering systems and separators
  • Midstream infrastructure: pipelines, compressors, storage tanks
  • Refinery modernization and auxiliary equipment
  • Gas distribution and storage infrastructure
  • Engineering, procurement, and construction (EPC) services
  • Environmental and safety compliance technologies

Opportunities

Mexico’s oil and gas sector offers major opportunities for U.S. suppliers in equipment, technology, and services to support upstream projects, refinery upgrades, and pipeline construction. Pemex’s 2025-2030 investment plan includes 18 new oil and gas fields, 15 offshore platforms, 14 new pipelines totaling 175 km, and major refinery modernization projects, all of which will require imported equipment and specialized services. U.S. firms remain well positioned to compete, though they should anticipate local content requirements of 25-35 percent, slow permitting processes, and potential payment delays from Pemex.
 

Customs, Regulations, and Barriers to Trade

Trade Barriers

Mexico’s energy policy since 2018 has prioritized its state-owned companies, the Federal Electricity Commission (CFE), and Petróleos Mexicanos (Pemex). This approach has created significant non-tariff barriers for U.S. exporters and investors. Examples include:

  • Amendments to the Electric Power Industry Law (2021) requiring grid operators to dispatch CFE power ahead of privately generated electricity, regardless of cost or environmental performance
  • Regulatory delays, suspensions, or revocations of permits that restrict private companies’ ability to import, store, or retail fuels, or to operate renewable energy facilities
  • A 2019 exemption allowing Pemex until 2026 to comply with ultra-low sulfur diesel (ULSD) standards, creating an uneven compliance burden compared to foreign competitors
  • A 2022 policy requiring users of Mexico’s gas transportation network to source natural gas exclusively from CFE or Pemex, which prompted several U.S. companies to exit the market and led to USMCA dispute consultations
  • A 2024 constitutional amendment reclassifying CFE and Pemex as “public enterprises,” combined with a 2025 reform package guaranteeing CFE majority participation in generation projects and control over 54 percent of energy dispatched to the grid
  • A proposed constitutional amendment (2024) to ban hydraulic fracturing (fracking), with limited exceptions for national strategic interests, which could affect future upstream investment 

Together, these measures limit competition, create uncertainty for private investors, and restrict opportunities for U.S. suppliers of equipment, technology, and services. 

Import Requirements and Documentation

Imports of oil, natural gas, refined fuels, and related equipment require permits and licenses issued by the Secretariat of Energy (SENER), the National Energy Commission (CNE), and the Agency for Safety, Energy, and Environment (ASEA). Companies must comply with environmental and land use permits, social impact assessments, and in many cases demonstrate compliance with local content requirements. Private firms report frequent delays or rejections in permit issuance, which create operational challenges and trade barriers.

For petroleum products, Mexico requires a Permiso Previo de Importación de Petrolíferos (Trámite SENER-09-002) issued by SENER’s Dirección General de Petrolíferos. This permit covers imports of crude oil, gasoline, diesel, jet fuel, liquefied petroleum gas, and other refined products. Applications must be submitted electronically through the Ventanilla Digital Mexicana de Comercio Exterior (VUCEM), using a valid electronic signature (FIEL). Permits are generally processed within 12 business days and do not carry a fee. Applicants must file a separate permit request for each product based on its tariff classification.

Holding an import permit does not exempt companies from other regulatory obligations. Importers must also register with Mexico’s sector-specific customs importer registry (padrón de importadores), ensure that products comply with the NOM-016 fuel quality standard, and obtain permits from the Comisión Reguladora de Energía (CRE) for regulated activities. Products are also subject to applicable taxes upon entry into Mexico. Failure to obtain the permit will result in denial of entry for covered hydrocarbons and refined products.

Labeling and Marking Requirements

Fuel quality and sulfur content in diesel and gasoline are subject to Mexican Official Standards (NOMs). Pemex received an exemption until 2026 from compliance with maximum sulfur content requirements, whereas private importers must continue to meet ULSD standards. Equipment imports must comply with NOM safety and efficiency standards, and products sold in Mexico require labeling in Spanish.

Exporters of finished fossil fuels to Mexico should also be aware of compliance obligations under U.S. Executive Order 13224, which designates foreign terrorist organizations and individuals supporting terrorism. Transactions involving designated entities are prohibited, and exporters should conduct enhanced due diligence to ensure compliance. Companies are encouraged to review guidance from the Financial Crimes Enforcement Network (FinCEN) on red flags and compliance obligations when exporting refined fuels to high-risk markets.

Resources

Events

  • Offshore Technology Conference (OTC): May 4-7, 2026. Houston. 

Commercial Specialist

For further information and assistance in exploring opportunities in Mexico’s oil and gas sector, contact: Lauren Coughlin (Lauren.Coughlin@trade.gov)

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