Oil and gas production in Mexico fell in 2024 and 2025 on a year-over-year basis and in real terms. This occurred according to data from INEGI.
At the same time, Foreign Direct Investment (FDI) inflows into the country’s oil and gas extraction sector recorded a negative balance of $225 million in 2025. Prior to that, inflows had reached $1.817 billion in 2025.
Oil and Gas Production in Mexico
Hydrocarbon extraction is a pillar of Mexico’s energy sovereignty and public finances. FDI in this subsector is crucial for transferring deepwater technology, mitigating financial risks, and reversing the mature decline of strategic fields.
In 2025, oil and gas production totaled 2.197 trillion pesos at 2018 prices. This figure represented a year-over-year decline of 5.7%. In 2024, this same indicator decreased by 6.4%.
Although subject to fluctuations, the extraction of these minerals in Mexico has generally shown a downward trend over the past decade.
Public Finances
Oil revenues in 2025 showed less growth compared to 2024, standing at 2.7% of GDP. When including the budget line for debt service payments and the federal government’s extraordinary contribution of 253.8 billion pesos for the repurchase of Petróleos Mexicanos (Pemex) liabilities, oil revenues stood at 3.5% of GDP. This level is below the 2.9% of GDP observed in 2024.
According to the Ministry of Finance, this result was due to a lower production platform. Additionally, lower reference prices for oil and natural gas and a decline in domestic sales played a role. These factors were partially offset by the appreciation of the exchange rate in the first half of 2025. A higher oil price also helped—$57.8 per barrel (ppb) budgeted vs. $61.0 ppb observed.
During 2025, the Mexican government implemented various measures to strengthen Pemex’s financial position and improve its debt profile. In addition to extraordinary support for bond buybacks, two additional operations were carried out to improve the entity’s financial profile. This was achieved through the issuance of Pre-capitalized Notes with contingent backing from the federal government. It was also achieved through the creation of a financial vehicle for supplier payments.
Taken together, these actions helped reduce the company’s budget deficit and decrease its accounts payable, thereby strengthening its liquidity and operational capacity.
These measures were reflected in upgrades to Pemex’s credit ratings by Fitch Ratings and Moody’s, which issued their first positive revisions since 2014, helping to lower the public sector’s financing costs and improve the debt maturity profile.