November 2017, Vol. 244, No. 11

Features

Unexpected Move Could Derail Mexico’s Oil Boom

New rules on sharing of proceeds could delay Mexico’s new oil developments and put plans by foreign firms on hold, as the private sector mulls over whether new regulations would be enough disincentive to stop doing business there. “This is the single most important outstanding issue in the sector,” Raymundo Pinones, director of Mexico’s Association of Hydrocarbon Companies, told Bloomberg. “It could delay activity until there is clarity. In place of drilling or continuing with development, the industry is waiting for this to be resolved,” Pinones noted. Deputy Energy Minister Aldo Flores believes that “If there’s enough evidence and certainty that the discovery extends into Pemex’s block,