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Mexico Has Vast Oil and Gas Reserves, So Why Is It Talking About Importing Oil From Others?

J. Paul Getty once said that the formula for success was to “rise early, work hard, strike oil.” For Mexico, it may be “import oil.” There has been a lot of buzz about Mexico’s vast oil and gas reserves and recent efforts to open its natural resources to foreign investment and development. But something counterintuitive is also occurring. Mexico, the world’s 10th largest crude oil producer, may actually import oil. How can these potentially inconsistent energy policies be reconciled? Simply put, the denationalization process takes time, and foreign energy companies are in the nascent stage of converging on Mexico. Mexico has an immediate need for oil in order to boost production at its refineries. More…