Chevron Corporation (CVX): Mexico Takes Steps To End Oil Monopoly

Another key factor for oil companies will be the overall health of Mexico’s economy. Over the past three years, Mexico’s economic growth has slowed rather significantly from 5.3% in 2010 to 3.9% in 2012. For the year, Mexico’s central bank has lowered its GDP growth forecast to 2%-3% from 3%-4%, and in 2014 the metric is expected to come in the 3.2% to 4.2% range [also see How Big Oil Is Drilling For Cheap].

But considering that Mexico is the third largest supplier of crude to the U.S. and owns the world’s fourth largest reserves of shale gas, this legislation and the subsequent flow of foreign capital investments could certainly open up some lucrative opportunities for investors willing to make a bet on Mexico’s latest efforts to bring its oil and gas industry into the 21st century.

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Disclosure: No positions at time of writing.

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