As wells dry up, Mexico could be forced to privatize oil

MEXICO CITY

But prosperity from years of record oil prices has allowed Mexico to postpone what most agree are much-needed reforms. And now, as production at Pemex’s top oil field declines, pressure to find new fields is mounting. But industry analysts say Mexico’s constitutional restriction on foreign direct investment will hamstring costly exploration efforts, and possibly disrupt the flow of oil, 80 percent of which heads to the US.

Indeed, with his fragile political mandate, Mr. Calderon may find that oil becomes the issue that will define his presidency.

Christian Science Monitor