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Mexico Oil and Gas Market Report Overview

The Mexico oil and gas market attained a value of USD 198.28 Billion in 2025 and is projected to expand at a CAGR of 3.40% through 2035. The market is further expected to achieve USD 277.00 Billion by 2035. Higher levels of utilization at refineries are prompting suppliers to come up with process-control, maintenance, emissions monitoring, and recovery technologies that would fit Mexico’s growing domestic petroleum sector infrastructure.

Key Market Trends and Insights

  • Mexico is prioritizing gas infrastructure expansion, with pipeline modernization and new investments supporting industrial growth, electricity generation, and supply reliability nationwide.
  • Companies are optimizing mature oilfields and expanding offshore exploration, using advanced drilling technologies to sustain production and improve resource recovery.
  • Downstream integration is increasing as Mexico modernizes refineries and petrochemical facilities, reducing fuel imports while creating higher-value products domestically.

Market Size & Forecast

  • Market Size in 2025: USD 198.28 Billion
  • Projected Market Size in 2035: USD 277.00 Billion
  • CAGR from 2026 to 2035: 3.40%
  • Fastest-Growing Regional Market: Yucatan Peninsula

The Mexico oil and gas market is beginning to pay more attention to efficiency as opposed to increasing production capacity. Companies are prioritizing asset optimization, operational reliability, cost control, digital technologies, predictive maintenance, and resource management to improve productivity, reduce downtime, and strengthen profitability amid changing market conditions.

The Mexico oil and gas market is evolving into an advanced integration stage where Petróleos Mexicanos concentrates on refining domestically while increasing productivity from upstream operations. Notable progress includes the growth of the Olmeca refinery in Dos Bocas as this project is bringing new capacity in Mexico’s refining industry with a focus on transportation fuels production. According to industry research, fuel oil production decreased by 33.1 percent, going from an average of 240,000 barrels per day in 2025 to 161,000 barrels per day in the first half of 2026.

On the other hand, the upstream sector is moving toward developments that would produce more fast output from existing resources. Pemex has pointed out Ixachi and Bakté as key projects aimed at stabilizing production of oil and gas while exploration operations are using seismic surveys and drilling to locate new resources. In February 2025, Pemex unveiled its 2025-2030 Work Plan, targeting increased oil, gas, refining, petrochemical, and fertilizer production through strategic investments. Moreover, in June 2026, Sempra Infrastructure’s ECA LNG project began production in Mexico, with commercial operations expected within several months.

Compound Annual Growth Rate

3.4%

Value in USD Billion

2026-2035


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Key Trends and Recent Developments

Mexico Oil and Gas Industry Segmentation

The Expert Market Research's report titled “Mexico Oil and Gas Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:

Market Breakup by Sector

  • Upstream
  • Midstream
  • Downstream

Key Insight: The upstream sector receives support from the priority-field policy of PEMEX, which emphasizes mature assets optimization, focused exploration, enhanced recovery and production stability. The midstream sector of the Mexico oil and gas market is motivated by the requirement to link industrial clusters, electricity generation sites, border areas and under-supplied markets through reliable natural gas infrastructure. In June 2026, Trace Midstream announced plans to construct the Apollo Gas Plant, expanding natural gas processing capacity in Delaware Basin, to support production growth. The downstream industry is facilitated through the rehabilitation of refineries, production of domestic fuels and petrochemicals, and increased utilization of existing assets. In each of these areas, contractors are becoming more sought after for their expertise in engineering, asset integrity, process optimization, and emissions management as opposed to traditional capacity expansion.

Market Breakup by Downstream Oil and Gas Market by Type

  • Downstream Oil
    • Breakup by End Use
      • Residential
      • Industrial
      • Forest and Agriculture
      • Transportation
      • Others
  • Downstream Gas
    • Breakup by End Use
      • Power
      • Fertilizer
      • Industrial
      • Others

Key Insight: The downstream oil sector of the Mexico oil and gas market is fueled by improvements to the existing refineries, increased capacity, transportation fuel production, and the enhanced conversion of the local crude into more valuable products. On the other hand, the downstream gas segment is being driven by increased supply of natural gas, the need for petrochemical feedstocks, gas processing facilities, and industrial consumption. In May 2026, INEOS and Shell agreed to jointly explore new oil and gas opportunities in Mexico’s Gulf, expanding offshore collaboration. Refining companies are therefore in need of equipment that can offer them enhanced reliability, operational efficiencies, and better maintenance schedules, whereas the gas processors are in need of improved compression, separation, fractionation, and process control systems.

Market Breakup by Region

  • Baja California
  • Northern Mexico
  • The Bajío
  • Central Mexico
  • Pacific Coast
  • Yucatan Peninsula

Key Insight: The region of Baja California relies on cross-border gas connectivity, liquefied natural gas facilities, and electricity demands related to its industries. Northern Mexico derives from the expansion of manufacturing and pipeline connections, which enable energy intensive exports. Bajío relies on automobile and high-technology manufacturing zones, which require secure supplies of gas and fuels. The Central Mexico oil and gas market gains from refining-related logistics, industry, and pipelines that provide energy to large-scale population centers. The Pacific Coast is affected by port operations, industry, and infrastructure for importing fuel. Yucatan Peninsula is increasingly reliant on gas pipelines, power generation, tourism, and improved energy security in southeastern Mexico.

Mexico Oil and Gas Market Share

By type, the upstream category holds the dominant share of the market owing to the increased focus on production stabilization and exploration

Upstream remains the most dominant sector across the Mexico oil and gas market scope as Pemex invests capital and technological resources into sustaining crude oil and natural gas production from their priority fields. Mature field interventions, exploration drilling, wells optimization and asset integration such as that of Ixachi and Bakté are among priorities. It is especially pertinent for drilling contractors, seismic contractors, artificial lift and production optimization companies looking for long-term projects. The Mexican government continues to use its hydrocarbon strategies in favor of developing domestic hydrocarbons which are close to the goals of Mexico to enhance reliability of production and recoverability of existing reservoirs. In July 2026, Marubeni launched a new LNG infrastructure initiative, strengthening energy supply capabilities and supporting cleaner fuel transitions across international markets.

Midstream sectors are becoming the fastest growing segment as Mexico builds pipelines, compression plants, storages and regional gas links in order to increase supply reliability. The government's 2030 Gas Infrastructure Plan involves substantial investment by CFE and CENAGAS in connection with new power plants and industrial corridors. These include Centauro del Norte Pipeline, Ramal Tula and Cuxtal II Pipelines which offer Mexico oil and gas market opportunities to pipeline engineers, compressors, meters and integrity management automation suppliers.

Downstream oil generates maximum demand in the market due to refinery modernization and greater domestic fuel processing

The downstream oil largely contributes to the Mexico oil and gas market revenue, focused on the recovery of refineries, increasing usage of crude-processing capability and increasing domestic production of transportation fuels. Pemex is focusing on improving the reliability of operations at the existing refineries while incorporating Olmeca into the national refining infrastructure. Thus, process equipment, catalysts, rotating equipment, maintenance services, automation, and optimization of refineries are in demand. Suppliers capable of offering turnaround management and helping increase conversion efficiency can capitalize on Mexico's desire for improved fuel availability and reduced dependence on imports of processed petroleum. In June 2026, BP merged its businesses into upstream and downstream divisions, streamlining operations, and strengthening focus across its energy portfolio.

Fast development is being observed in the downstream gas segment, as Mexico tries to maximize the value of its natural gas via processing, petrochemicals production, and industrial use. Gas-rich areas have raw materials for the production of ethane-based chemicals and other value-added products, boosting the Mexico oil and gas market value. Planning by the government ties in gas infrastructure expansion with electricity production and industrial consumption. Such an environment provides opportunities for suppliers of gas processing equipment, fractionators, compressors, process control, and leak management. Increased integration of gas supply with petrochemicals production encourages operators to focus on reliable feedstock availability and its utilization.

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Mexico Oil and Gas Market Regional Analysis

Northern Mexico leads regional demand due to industrial gas consumption and cross-border infrastructure

The North Mexico oil and gas market continues to hold dominance in terms of regional markets due to the dependence of its industries on reliable supplies of natural gas, gasoline, diesel fuel, and so on. Export-oriented businesses operating in such sectors as automotive, metals, and electronics in the proximity of the United States border are growing their demands on pipeline capacity and energy security. State-sponsored projects like Centauro del Norte seek to enhance the link between the gas supplies in Sonora and Baja California and promote industrial growth. Pipeline companies, compression equipment vendors, natural gas storage companies and industrial energy services have good prospects here.

The Yucatan Peninsula emerges to be the fastest-growing region due to the development of natural gas supplies for electricity generation, tourism, manufacturing, and commercial needs, accelerating the Mexico oil and gas market growth. Construction of the Cuxtal II gas pipeline connecting the regions of Chiapas, Tabasco, Campeche, and Yucatan might enhance the access to natural gas in the region. The authorities consider the project as an important infrastructure project for the development of electricity and gas supply in the region. In May 2026, Karpowership deployed floating LNG-to-power infrastructure in Mexico’s Yucatán Peninsula, strengthening regional electricity supply and grid reliability.

Competitive Landscape

The competitive dynamics of the market are based on the integrated approach of Pemex to upstream, refining, petrochemicals, and natural gas. Leading Mexico oil and gas companies also retain a place in the market by means of contractual relations, technologies, equipment, and specific services. Mexico’s evolving oil and gas strategy creates opportunities for companies across exploration, mature-field optimization, refining, petrochemicals, emissions management, and midstream infrastructure.

Investments in strategic projects are encouraging companies to strengthen capabilities in drilling technologies, refinery optimization, methane monitoring, digital asset management, and maintenance services. The midstream segment also offers significant growth potential, particularly for companies providing pipeline construction, compression, metering, storage, and integrity-management solutions. Leading Mexico oil and gas market players are increasingly focusing on localized production, operational efficiency, infrastructure modernization, and technologies that improve reliability while reducing emissions.

Shell plc

Shell was founded in 1907, and the headquarters is in London, United Kingdom. Shell started off in petrochemicals and lubricants but has since diversified to provide services in LNG, hydrocarbons exploration, natural gas marketing, fuels, lubricants, and consultancy services. Shell Mexico also includes the Altamira natural gas terminal and initiatives to develop Mexican suppliers.

Citla Energy

Founded in 2015, the headquarters of Citla Energy is located in Mexico City, Mexico. The independent Mexican E&P Company seeks to develop a diversified portfolio of offshore and onshore assets through both equity investment and strategic partnerships. Citla Energy has interests in shallow water blocks in Mexico alongside other international operators like Eni and Cairn.

Pemex

Founded in the year 1938, Pemex is based in Mexico. Being Mexico’s national petroleum company, Pemex covers various areas such as exploration, production, refining, natural gas, petrochemicals, transportation and commercialization. Pemex continues to be the core of the country’s oil and gas development, and the current focus of the company is on priority upstream projects, refinery rejuvenation, petrochemical integration, gas infrastructure and better utilization of the national hydrocarbons.

ExxonMobil Corporation

Established in 1885, ExxonMobil Corporation is based in New York, United States. In Mexico, the company is active in all three business segments including upstream, downstream and chemicals, where the upstream segment considers exploration and production opportunities via seismic processing, reservoir simulation, drilling and facility design technologies. The downstream segment of the company also provides specialty lubricants to automotive, industrial, marine, and aviation sectors.

Other key players in the market include Chevron Corporation, TotalEnergies SE, Sicim S.p.A., Harbour Energy plc, BP p.l.c., and Murphy Oil Corporation, among others.

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Key Features of the Mexico Oil and Gas Market Report

  • In-depth market size analysis with historical data and 2026 growth forecasts.
  • Segment-wise breakdown by upstream, midstream, downstream, product type, and region.
  • Competitive landscape with profiles of leading oil and gas companies operating in Mexico.
  • Regional insights highlighting exploration, production, refining, pipeline, and distribution activities across major regions.
  • Industry analysis focusing on production trends, infrastructure development, investment patterns, and technological adoption.
  • Regulatory and policy impacts on exploration, production, refining, energy security, emissions reduction, and market expansion.

Why Choose Expert Market Research?

  • Reliable market forecasts based on expert analysis and verified data sources.
  • Customizable reports tailored to your Mexico oil and gas business objectives and industry needs.
  • Trusted by leading energy companies, oilfield service providers, investors, and research institutions worldwide.
  • Continuous support and updates on emerging oil and gas trends, investments, technologies, and regulatory developments.

Call to Action

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Key Questions Answered in the Report

The market was valued at nearly USD 198.28 Billion in 2025.

The market is projected to grow at a CAGR of 3.40% between 2026 and 2035.

The market is assessed to witness a healthy growth in the forecast period to reach around USD 277.00 Billion in 2035.

The different segments based on sector considered in the market report are upstream, midstream, and downstream.

The major regions in the market include Baja California, Northern Mexico, The Bajío, Central Mexico, Pacific Coast, and Yucatan Peninsula.

The key market players are Shell plc, Citla Energy, Pemex, ExxonMobil Corporation, Chevron Corporation, TotalEnergies SE, Sicim S.p.A., Harbour Energy plc, BP p.l.c., and Murphy Oil Corporation, among others.

Key challenges include declining mature-field production, infrastructure constraints, regulatory uncertainty, environmental concerns, investment requirements, operational inefficiencies, and dependence on imported refined products.

Key strategies driving the market include mature-field optimization, exploration of offshore resources, refinery modernization, gas infrastructure expansion, petrochemical integration, digitalization, and methane-emissions reduction.

Report Summary

Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.

Key Highlights of the Report

Please note that the figures mentioned in the description serve as estimates and may vary from the actual figures presented in the final report.

REPORT FEATURES DETAILS
Base Year 2025
Historical Period 2019-2025
Forecast Period 2026-2035
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Sector
  • Region
Breakup by Sector
  • Upstream
  • Midstream
  • Downstream
Breakup by Region
  • Baja California
  • Northern Mexico
  • The Bajío
  • Central Mexico
  • Pacific Coast
  • Yucatan Peninsula
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Shell plc
  • Citla Energy
  • Pemex
  • ExxonMobil Corporation
  • Chevron Corporation
  • TotalEnergies SE
  • Sicim S.p.A.
  • Harbour Energy plc
  • BP p.l.c.
  • Murphy Oil Corporation
  • Others

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