Oil and Gas
In 2008, Mexico was the world's seventh-largest crude exporter, and the third-largest supplier of oil to the U.S. Oil and gas revenues provided more than one-third of all Mexican Government revenues.
Mexico's state-owned oil company, Pemex, holds a constitutionally established monopoly for the exploration, production, transportation, and marketing of the nation's oil. With its primary known oil reserves already in serious decline, Mexico still must determine in the near future how it wants to exploit probable deepwater reserves in order to avoid very difficult economic choices. The Mexican Congress passed energy reform legislation in October 2008 that gives Pemex more budgetary autonomy and transparency. However, the reforms do not open the petroleum sector to private sector investment. Mexico also imports finished petroleum products such as gasoline, due to a lack of refinery capacity. In 2009, the government decided to build a new refinery, the first in 30 years, in the state of Hidalgo.
While private investment in natural gas transportation, distribution, and storage is permitted, Pemex remains in sole control of natural gas exploration and production. Despite substantial reserves, Mexico is a net natural gas importer.