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Mexico
Project experience in the Gulf of Mexico region of the United States is highly regarded.
Even though the Gulf's geology differs from one part to the next, it is essentially the same basin
and has undergone the same evolutionary process. Deepwater and shallow-water exploration can
be successfully navigated by companies with the right fit. Despite the fact that low prices make it
difficult to build new projects, the Mexican reform is taking root. As a result of the industry's input,
the authorities have made changes to the contractual models and tax terms that were in place only
a year ago. However, there is still plenty of room for improvement to ensure that investors receive
adequate returns for the risks they take. It's critical to maintain a healthy ratio of upside to downside
(Moreno-Brid, Juan and Jaime, 2009). Depending on the asset type, such as a known basin or an
unexplored area, the risk factor can vary greatly. In subsequent rounds, including Pemex's farm-
outs, the industry will evaluate whether a good balance between risk and reward is present.
In this respect, Mexico competes with the rest of the world. More than US$300 billion
worth of upstream assets are expected to be sold globally in 2016. In order to attract investors,
each host country will need to find the right mix of incentives. Regulatory bodies, investors, and
operators alike are working together to ensure that the proper procedures are followed in the
consolidation of the energy reform. Companies looking to enter the upstream sector will find an
ideal operating environment in Mexico. Some complications and difficulties accompany this,
however. Companies that have worked on deep water projects in the past and are familiar with the
specifications of these operations have an advantage over their competitors when doing business
offshore.
Mexico's oil industry has been under monopoly rule for decades and has a well-established
infrastructure. In order to keep pace with the liberalization process, the services sector will have
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to adapt, modernize, and become more efficient. It is critical to put in place new procedures and
technologies (Moreno-Brid, Juan and Jaime, 2009). Those in the service sector will be forced to
compete on the same terms as their northern neighbors who have found ways to develop
unconventional plays, enhanced recovery projects, and offshore areas while also saving money.
According to national content policies, the Mexican model is moderate and progressive in
comparison to Brazil's stricter requirements for foreign companies and delays in projects. More
realistic policy-making is taking place in Mexico, which takes into account the country's local
realities and its acknowledgment that it needs further development. Industry experts believe that
this will be the case for some time to come.
Since 2007, Mexico's economy has grown at an average rate of 2.1 percent per year, despite
the country's recent turbulent international environment. Mexico's economic strength stems from
the country's prudent monetary, commercial, and financial policies, all of which are aimed at
enhancing the domestic market (Coatsworth, 2008). For example, economic development strategy
of Mexico includes solidification of consumption in response to social programs and greater
endorsing private investment in strategic sectors, increasing public investment, financial inclusion,
and increasing trading relations with other countries for the reconstruction of the global value
chain.
In 2017 and 2018, the Mexican economy propagated at a slow pace, but in 2019 and 2020,
it contracted more severely and returned to growth. There has been an ongoing trend of moderate
economic freedom over the past five years. With only a 0.1-point increase in economic freedom
across all 12 indicators, Mexico has remained stuck in the middle of the "Moderately Unfree"
countries list since 2017. Trade and investment are free and Mexico's fiscal health is good. But the
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country's historically weak rule of law does not match its status as Latin America's second largest
economy.
Mexico is Latin America's top exporter and the world's 15th-largest economy. It has a
nominal GDP of $9,946 but a real GDP of $1,269 billion. Mexico is the 19th largest exporter in
the world, with FDI of $29.3 billion. Mexico is a rising global economic force. With 50% of its
people classified as middle class and 30% classified as upper class, Mexico is on its way to
becoming a country dominated by the middle class. We hope the Mexican economy will continue
to grow for the foreseeable future (Chiquiar, Daniel, and Manuel, 2009-2011). The exploitation of
natural resources is legitimate, but a mandatory minimum quota cannot be the only policy in the
direction of that goal. With a large service sector and an important level of industrialization,
Mexico is sure to continue to grow and become more capable.
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Work cited
Moreno-Brid, Juan Carlos, and Jaime Ros. Development and growth in the Mexican economy: A
historical perspective. Oxford University Press, 2009.
Chiquiar, Daniel, and Manuel Ramos-Francia. Competitiveness and growth of the Mexican
economy. No. 2009-11. Working Papers, 2009.
Coatsworth, John H. "Inequality, institutions and economic growth in Latin America." Journal of
Latin American Studies 40.3 (2008): 545-569.

Unformatted Attachment Preview

Mexico Project experience in the Gulf of Mexico region of the United States is highly regarded. Even though the Gulf's geology differs from one part to the next, it is essentially the same basin and has undergone the same evolutionary process. Deepwater and shallow-water exploration can be successfully navigated by companies with the right fit. Despite the fact that low prices make it difficult to build new projects, the Mexican reform is taking root. As a result of the industry's input, the authorities have made changes to the contractual models and tax terms that were in place only a year ago. However, there is still plenty of room for improvement to ensure that investors receive adequate returns for the risks they take. It's critical to maintain a healthy ratio of upside to downside (Moreno-Brid, Juan and Jaime, 2009). Depending on the asset type, such as a known basin or an unexplored area, the risk factor can vary greatly. In subsequent rounds, including Pemex's farmouts, the industry will evaluate whether a good balance between risk and reward is present. In this respect, Mexico competes with the rest of the world. More than US$300 billion worth of upstream assets are expected to be sold globally in 2016. In order to attract investors, each host country will need to find the right mix of incentives. Regulatory bodies, investors, and operators alike are working together to ensure that the proper procedures are followed in the consolidation of the energy reform. Companies looking to enter the upstream sector will find an ideal operating environment in Mexico. Some complications and difficulties accompany this, however. Companies that have worked on deep water projects in the past and are familiar with the specifications of these operations have an advantage over their competitors when doing business offshore. Mexico's oil industry has been under monopoly rule for decades and has a well-established infrastructure. In order to keep pace with the liberalization process, the services sector will have to adapt, modernize, and become more efficient. It is critical to put in place new procedures and technologies (Moreno-Brid, Juan and Jaime, 2009). Those in the service sector will be forced to compete on the same terms as their northern neighbors who have found ways to develop unconventional plays, enhanced recovery projects, and offshore areas while also saving money. According to national content policies, the Mexican model is moderate and progressive in comparison to Brazil's stricter requirements for foreign companies and delays in projects. More realistic policy-making is taking place in Mexico, which takes into account the country's local realities and its acknowledgment that it needs further development. Industry experts believe that this will be the case for some time to come. Since 2007, Mexico's economy has grown at an average rate of 2.1 percent per year, despite the country's recent turbulent international environment. Mexico's economic strength stems from the country's prudent monetary, commercial, and financial policies, all of which are aimed at enhancing the domestic market (Coatsworth, 2008). For example, economic development strategy of Mexico includes solidification of consumption in response to social programs and greater endorsing private investment in strategic sectors, increasing public investment, financial inclusion, and increasing trading relations with other countries for the reconstruction of the global value chain. In 2017 and 2018, the Mexican economy propagated at a slow pace, but in 2019 and 2020, it contracted more severely and returned to growth. There has been an ongoing trend of moderate economic freedom over the past five years. With only a 0.1-point increase in economic freedom across all 12 indicators, Mexico has remained stuck in the middle of the "Moderately Unfree" countries list since 2017. Trade and investment are free and Mexico's fiscal health is good. But the country's historically weak rule of law does not match its status as Latin America's second largest economy. Mexico is Latin America's top exporter and the world's 15th-largest economy. It has a nominal GDP of $9,946 but a real GDP of $1,269 billion. Mexico is the 19th largest exporter in the world, with FDI of $29.3 billion. Mexico is a rising global economic force. With 50% of its people classified as middle class and 30% classified as upper class, Mexico is on its way to becoming a country dominated by the middle class. We hope the Mexican economy will continue to grow for the foreseeable future (Chiquiar, Daniel, and Manuel, 2009-2011). The exploitation of natural resources is legitimate, but a mandatory minimum quota cannot be the only policy in the direction of that goal. With a large service sector and an important level of industrialization, Mexico is sure to continue to grow and become more capable. Work cited Moreno-Brid, Juan Carlos, and Jaime Ros. Development and growth in the Mexican economy: A historical perspective. Oxford University Press, 2009. Chiquiar, Daniel, and Manuel Ramos-Francia. Competitiveness and growth of the Mexican economy. No. 2009-11. Working Papers, 2009. Coatsworth, John H. "Inequality, institutions and economic growth in Latin America." Journal of Latin American Studies 40.3 (2008): 545-569. Name: Description: ...
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