Mexico captured 299 million Foreign Direct Investment (FDI) in the oil and gas extraction industry during the first quarter of 2022, according to data from the Ministry of Economy.
FDI flows in this industry have shown the following trajectory, considering complete years: in 2019 they were 1,031 million dollars, in 2020 they fell to 621 million and in 2021 they rose to 1,397 million.
Since 1999, Mexico’s oil and gas extraction industry has recorded FDI inflows of $6.781 billion.
After reaching their highest level since 2008 in March, oil prices fell slightly due to the coordinated release of strategic oil reserves by the main advanced economies, the possibility of a new nuclear agreement with Iran that would allow it to resume its exports of oil, as well as the moderation in oil demand due to the imposition of confinement measures in China in response to the resurgence of Civid-19 cases.
However, in recent weeks, oil prices have been subject to volatility in the face of the European Union‘s proposal to phase out Russian oil imports over the next six months and the G7’s commitment to phase out its energy dependence on Russia.
Oil and gas
Likewise, according to the Bank of Mexico, the reference prices of natural gas registered a mixed behavior between regions, increasing in the US market due to low temperatures and higher natural gas exports, and decreasing in Europe during most of the period due to due to lower demand from China and improved weather conditions.
At the end of April there were bouts of volatility in European markets after Russia cut off gas supplies to Poland and Bulgaria due to disagreements over payment currency, and again in the second week of May, when natural gas shipments from Russia through gas pipelines in Ukraine and Poland were interrupted.
According to the Department of Commerce, several private sector oil and gas contractors that received contracts for onshore, shallow water and deepwater projects in Mexico from 2015 to 2018 began implementing their investment plans in 2021.
Among the companies that began their investments in Mexico in 2021 are BPH, BP, Shell, Murphy Energy, Chevron, ExxonMobil, Fieldwood, Talos, Diavaz, Grupo R, INPEX, Total, Premier Oil, Petrobal, Hunt, Grupo México, Jaguar, Petrofac, Lukoil, China Offshore Oil Corporation and Hokchi Energy.