Insights/Case studies/Newsroom/CareersCareersCareersPartnersConsultantsTechnology innovationCorporateEarly careersSearch Jobs/About us/Contact us Global locations

Search paconsulting.com
  • Phone
  • Contact us
  • Locations
  • Search
  • Menu

Share

  • Add this article to your LinkedIn page
  • Add this article to your Twitter feed
  • Add this article to your Facebook page
  • Email this article
  • View or print a PDF of this page
  • Share further
  • Add this article to your Pinterest board
  • Add this article to your Google page
  • Share this article on Reddit
  • Share this article on StumbleUpon
  • Bookmark this page
.
 
Close this video

Mexican Ministry of Economy: Balancing the need for foreign investment in the oil industry with the need to develop the country’s own economy

The Mexican Government wants to make sure the country gets the maximum benefit from its natural resources. So it needs to specify the extent to which energy projects run by foreign investors should use Mexican goods and services, labour, technology, training and infrastructure.

If the requirements are too high, that would deter foreign investment – especially if there are fears Mexico wouldn’t have the capacity. If too low, Mexico would attract international investment, but at the expense of developing the national energy industry.

The Ministry of Economy asked us to help work out targets for ‘national content’ in 2025 for deepwater and ultra-deepwater projects in terms of goods and services. To establish a baseline, we looked at how Pemex, the largest national oil company, spent its money on projects like this in 2014. Then, to work out what Mexico could aim for in terms of expanding its capacity, we analysed the situation in four countries that are pioneers in this field: Brazil, Nigeria, Norway and the US.

We identified the main barriers that constrain expansion and the policies successful countries have used to overcome them. Using that information we constructed a mathematical model that we then asked leading energy companies to validate.

The Government now has a clear picture of the impact investment in various policies might have and how long they’d take to work. With that concrete evidence, they know the level of national capacity they can expect to achieve in years to come and what it’s realistic to stipulate foreign companies should use.

"PA has given us a methodology and the information we need to set targets for national content in deepwater and ultra-deepwater projects. More than that, they’ve given us a tool to evaluate and measure how different policies will boost our industry, and how quickly.”

Hector Marquez Solis,
Head of The Energy Unit,
Mexican Ministry of Economy

Find out more about our work in energy and utilities.

Contact the energy and utilities team

By using this website, you accept the use of cookies. For more information on how to manage cookies, please read our privacy policy.

×