Mexico's Sheinbaum unveils rescue plan to revitalize Pemex oil output

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Mexican president Claudia Sheinbaum has unveiled a rescue plan for Pemex, the country’s oil and gas company, to breathe new life into Mexico’s energy sector.

Mexico’s crude output has been declining over the last ten years and has been below 1.4 million b/d since December 2024.

The new plan aims to boost current crude production by 31% to as much as 1.8 million b/d through 2030.

Sheinbaum’s plan outlines higher investment in Pemex’s underperforming oil fields, which could increase Mexico’s output and entice private sector participants.

So far, there's some market skepticism around the announcement, since past administrations have tried to revive Mexico’s upstream industry without success.

Andres Manuel Lopez Obrador’s government aimed for energy independence and 3.5 million b/d of crude output.

His administration’s changes resulted in major third parties leaving or reducing their activity in Mexico, while state-owned companies reaped the benefits.

But under Sheinbaum's more conservative approach, will Mexico's energy sector see a boost in investor confidence, oil production, and job opportunities?