Continued Uncertainty Has Some Upstream Firms Eying Mexico Exit, Industry Expert Says

In the Mexico energy industry, the prevailing challenge “is the uncertainty about when the rules are going to change again,” said Alma Del Toro, President of Blue Bull Energy. “And because Mexico keeps changing its mind, that creates the worst nightmare for any investor.”

Del Toro, who has more than 25 years of experience in the global energy industry, including in the United States, Latin America and Europe, considers the uncertain and inconsistent regulatory and political environment as the Mexican energy sector’s primary concern for large and small oil and gas companies.

“If you drill one or two exploration wells, you’re going to lose several millions of dollars, but that’s nothing compared to the amount you could lose if you are already years into developing a...