Lisa Bodell: Smart Leaders Sabotage Their Own Strategies
Traditional strategic planning is often more of a ritual than a breakthrough moment. Teams gather, review last year’s metrics, and churn out a cookie-cutter annual…
Thought Leader: Lisa Bodell
Why is the Mexican Energy Sector Collapsing?
Coming to you from the edge of Giants Playground in CO’s Lost Wilderness. Today we’re talking about Mexico’s energy sector.
As I was heading out on this trip, a fire broke out in Mexico’s Cantarell oil field, which has long been Mexico’s largest oil-producing asset. However, even before this fire, oil production from this field was already down to but 1/8 of peak production.
The Cantarell field was developed over a century ago and has accounted for most energy production in modern Mexican history. This meant Mexico never had to develop the infrastructure or workforce for a broad-based energy sector.
Even though Mexico has plenty of accessible oil fields, they can’t develop them due to a lack of skill and strict anti-investment laws. So energy production in Mexico is falling off, and there’s no reason to expect that to stop anytime soon. Within a few years, I expect Mexico to become a net energy importer (with most of that being refined product coming from the US).
But it’s not all bad…Mexican energy production might be slowing, but consumption is also rising. And thanks to NAFTA, Mexico is tied at the hip to the US. So even without a strong energy sector, Mexico’s future still looks bright. If government officials would stop lining their pockets and put that money where it should be, Mexico’s future could be even brighter.
Relevant and recent posts
Peter Zeihan: A $20 Billion Band-Aid for Argentina
The US just committed roughly $20 billion in a currency-swap with Argentina. That’s a whole lot of pesos. So, why did the US extend this…
Thought Leader: Peter Zeihan
Raja Rajamannar: Inside the McLaren–Mastercard Strategy
Speed, strategy or showbiz – what truly drives the McLaren x Mastercard partnership? In this episode of Media Dialogues with Storyboard18, Delshad Irani goes behind…
Thought Leader: Raja Rajamannar
More with this speaker
Peter Zeihan: A $20 Billion Band-Aid for Argentina
Thought Leader: Peter Zeihan
Peter Zeihan on Congressional Midterms
Thought Leader: Peter Zeihan
Peter Zeihan: Reality of the 100% China Tariff
Thought Leader: Peter Zeihan