Adrian Duhalt, Ph. D / Baker Institute
Developing a private sector in the oil and gas industry is surely a huge undertaking—even more so in a country where private investment was banned for almost eight decades. How can a private oil and gas sector be built after all this time? Change the rules of the game, establish a clear bidding process, select some attractive assets to be auctioned off, and hope that a decent number of potential investors will show interest. This is easier said than done, but it is currently happening in Mexico. The second-largest Latin American economy is gradually laying the foundation for an oil and gas sector where private—along with some state-owned—international companies are taking central stage.
So far, five bidding rounds have taken place in Mexico, resulting in the awarding of 48 blocks in both offshore and onshore areas to international and domestic firms.