They shouldn’t. Production came in at just over 2.55m barrels a day, up slightly from July. That’s the latest reminder that Mexico, which is one of the world’s top 10 producers, has at last halted the decline that began in 2004 when production reached a peak of 3.4m barrels a day.
Given Mexico’s tiny tax base and the fact that oil contributes more than one-third of all government revenue, the stabilisation will calm any fears about the country’s fiscal outlook. But what will it do for the chances of reform in the energy sector? Continue reading »