Mexico must overhaul its NOC

Crucial structural reforms and change in operating philosophy are needed to arrest PEMEX’s ongoing decline and restore oil production growth

Mexico’s crude oil output has dropped sharply to around 1.4m b/d, down from a peak of more than 3m b/d in the early 2000s, posing significant challenges for the upstream sector and the government. State oil company PEMEX accounts for most of the country’s oil output, producing about 95% of domestic crude as of 2025. The company faces unprecedented financial and operational pressure as President Claudia Sheinbaum’s administration seeks to balance state control over hydrocarbons with debt reduction and supply stability by prioritising unconventional resource development, among other initiatives. While energy analysts remain doubtful about the success of these measures in the long run, they cou