Mexico Defends its Policy on Oil After U.S. Comment

Worse, Mexico’s proven reserves are dwindling. Pemex says there is more oil beneath the Gulf of Mexico, but it lacks the cash to drill deeper wells.

In February, the world’s biggest oil companies turned down an offer to help Mexico go after that oil, partly because Pemex would own any petroleum obtained from drilling in water deeper than 1,640 feet.

Pemex also has complained it needs to invest more in modernizing its pipelines and refineries. There has been a rash of oil spills and pipeline explosions lately, and pro-business groups have called them a symptom of the company’s crumbling infrastructure.

The Arizona Republic