key term - Petróleos Mexicanos (PEMEX)

Definition

Petróleos Mexicanos (PEMEX) is the state-owned oil company in Mexico responsible for the exploration, production, refining, distribution, and sale of petroleum products. It plays a crucial role in Mexico's economy as one of the largest contributors to government revenue.

Related terms

Nationalization:

The process by which a government takes control over privately owned assets or industries. In the case of PEMEX, it was nationalized in 1938 when the Mexican government assumed ownership and control over the oil industry.

Oil Revenue Dependency: This refers to a situation where a country heavily relies on revenue generated from oil exports. Mexico's economy is highly dependent on PEMEX's oil revenue, making it vulnerable to fluctuations in global oil prices.

Energy Sector Reform: Refers to policy changes aimed at liberalizing and modernizing the energy sector, often involving the opening up of state-controlled industries to private investment. In recent years, Mexico has implemented reforms to attract foreign investment in its energy sector, including PEMEX.