Mexico is one of the largest oil producers in the world (with 1.6 million barrels produced daily in 2022), and the fourth largest in the Americas after the United States, Canada, and Brazil. In 2022, Mexico ranked 13th globally in crude oil production, 21st in crude oil reserves, 16th in refined capacity, and fifth in logistics infrastructure. In 2022, the United States imported over 637 million barrels of Mexico’s heavy crude and exported over 1.8 billion barrels of refined petroleum products to Mexico. This represents more than 72 percent of Mexico’s domestic gasoline, diesel, natural gas, and jet fuel consumption. Oil is a crucial component of Mexico’s economy. Earnings from this industry accounted for almost 20 percent of total government revenues in 2022 according to Pemex and the Secretariat of Treasury and Public Credit.Significant oil reserves have been confirmed in Mexico by major oil and gas companies operating in Mexico, and efforts to upgrade existing logistics infrastructure will likely drive private sector investment and provide opportunities for U.S. companies, either as contractors, sub-contractors, or suppliers of equipment and/or technology. However, under the current administration, private sector participation has been limited by the Secretariat of Energy and the energy regulator (the Comisión Reguladora de Energía or CRE). Private oil companies in Mexico are expected to reduce exploratory activity due to the expiration of exploration plans and the cancellation of contract allocation rounds. Secretary of Energy Nahle stated in June 2023 that there would be no subsequent oil rounds for new areas.