INDUSTRY OUTLOOK

Mexico’s oil and gas industry is probably at its best moment since the Energy Reform was signed. The country’s regulatory framework works so well that other countries are trying to mirror what CNH has been doing regarding the E&P licensing rounds’ process and transparency; every sector of the value chain (upstream, midstream and downstream) is moving forward smoothly; and the country is starting to experience tangible and measurable improvements regarding better economic and market conditions, tangible investments in key oil and gas states, job creation and academic development (knowledge economy), among others. With a new government in place, Mexico needs to continue moving forward with respect to previous efforts already in motion. Of course, analysts agree some parts of the regulatory and commercial frameworks could and should be improved, but none of these efforts should be stopped or canceled. Mexico’s oil and gas value chain has learned to work with international low oil prices and is trying to introduce better practices, technologies and services with a cost-efficiency mentality. Some of the most important local service companies are already shifting toward a more efficient mentality to comply with the requirements of world-class companies that only work with the best. While no one in the oil and gas industry can predict what will happen in the future, policymakers, regulators and industry players should be receptive to local and international trends and always work to improve this industry’s ever changing dynamic.