Subscribe to our free daily newsletters
  Oil and Gas News from OilGasDaily.Com  

Subscribe to our free daily newsletters

Oil, Trump, leave Mexico in dire economic straits
by Daniel J. Graeber
Mexico City (UPI) Jan 11, 2017

disclaimer: image is for illustration purposes only

Mexico, the second largest economy in Latin America, is facing economic headwinds because of lower oil prices and U.S. trade policy, a study finds.

The New Year brought new challenges to Mexican President Enrique Peña Nieto as U.S. President-elect Donald Trump bore down in a series of pre-inauguration critiques targeting the nation's staple automotive manufacturing sector.

The Mexican peso has declined more than 10 percent since Trump's surprise election victory in November and foreign investors are wary of taking action given the president-elect's threats on higher tariffs and stiffer taxes for cars made for the U.S. market. Elsewhere, the Mexican president has faced domestic unrest after retail fuel prices skyrocketed following a deregulation effort that rang in 2017.

An economic survey from the Organization for Economic Co-operation and Development finds the external headwinds for the Mexican economy are strong.

"Against this highly complicated global backdrop, Mexico has had to face various headwinds such as collapsing oil prices, a restrictive monetary policy in the United States, and a sharp depreciation of the peso," OECD Secretary General Angel Gurria said in an address from Mexico City.

The OECD finds widespread economic disparities in Mexico, from varying production centers in the north and south to other inequalities, including a lack of opportunities for women.

The deregulation that caused gas prices to spike at the start of 2017 is part of a broader reform program meant to open the country up to outside oil investment for the first time since 1938, when the Mexican government took control of the country's oil industry and sidelined foreign investments.

Apart from that opening, Mexican state oil company Petróleos Mexicanos announced two recent oil discoveries in the deep waters of its territory of the Gulf of Mexico and four in the shallow waters, which could combine for a potential production rate of around 22,000 barrels of oil per day. All told, the discoveries contain, at the high end, an estimated 200 million barrels of oil equivalent.

Nevertheless, Gurria said that, even as the rise in crude oil prices offers some support to the Mexican economy, the global background is "highly complicated."

The OECD said it expected the Mexican economy to grow at around 2.3 percent this year and manage only a 0.1 percent gain next year.

Comment on this article using your Disqus, Facebook, Google or Twitter login.

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only


Related Links
All About Oil and Gas News at

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Previous Report
Gas prices higher on average because of regional issues
Washington (UPI) Jan 10, 2017
Refinery issues for western U.S. states and higher crude oil prices pushed the national average price for gas to its highest point since June, retail data show. Motor club AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.37, an increase of about 2 cents from last week and 16 cents, or 7 percent, higher than one month ago. The West Coast ... read more

Dual-purpose biofuel crops could extend production, increase profits

Open-source plant database confirms top US bioenergy crop

WSU researchers discover unique microbial photosynthesis

Potential biofuel crops in Hawaii may successfully sequester carbon in soil

An ordered route to improved performance of solar cells

U.S. offshore regulator joins solar power trade group

Off-grid power in remote areas will require special business model to succeed

Vortex to acquire a 365 MW solar energy portfolio in UK

New York sets bar high for offshore wind

The answer is blowing in the wind

French power group aims to double wind capacity

New rules for micro-grids in Alberta

France sells off Engie stake to finance Areva rescue

EU clears French rescue of troubled nuclear firm Areva

UK asks regulators to assess Chinese nuclear reactor

Controversial nuclear power plant near New York to close

Obama again defends climate deal

Global warming hiatus disproved yet again

Scientists disprove global warming took a break

Tillerson called to testify on climate issues

New technology will cut plug-in hybrid fuel consumption by one third

VW directors knew of emissions scandal earlier: press

NAVYA Self-driving shuttle goes to work in Las Vegas

Cadillac keeps plan to sell Chinese-made cars in US

IS resistance in Mosul is weakening: commander

Suicide bombers kill 18 in Baghdad market attacks

Iraq launches offensive on IS near Syria border

Iraq eyes recapture of east Mosul within days

Russian strategic missile forces to go fully digital by 2020

S. Korea calls Trump's tweet 'clear warning' to North

N. Korea plans nuclear push in 2017: top defector

Five questions on China-N. Korea relations

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement