Latin America Rises, Mexico Stumbles in New Oil Landscape

Latin America's energy landscape is undergoing significant changes as global oil markets adjust to ongoing conflicts. The recent war in Iran has led to a shift in supply and demand, benefiting producers across the region.

Brazil, Argentina, Venezuela, and Guyana are among those taking advantage of higher prices and new opportunities for crude exports. Mexico, however, is struggling to adapt and remains behind in the new global oil map.

Pemex, Mexico's state-owned oil giant, reported revenues of about $1.3 billion in June, up 61.6% from a year earlier. Despite this increase, Pemex still carries liabilities totaling $77.5 billion, and its refining system generates losses of at least $10 billion annually.

Mexico's energy policy prioritizes supplying domestic refineries and meeting internal fuel demand over increasing exports. The country has not held any bidding rounds for new exploration or production projects since 2022, a significant departure from other regional players like the US, Brazil, and Argentina.