Mexico’s Pemex Plans Nationwide Fracking Expansion to Boost Production by 2030

Mexico's state oil company Pemex is implementing a major strategic shift to increase oil and natural gas production by expanding the use of hydraulic fracturing, marking a reversal from the previous administration's opposition to the practice. The 2025–2035 plan focuses on exploiting unconventional hydrocarbon deposits in shale basins with complex geology, aiming to add 197 million barrels of crude oil and 303 billion cubic feet of natural gas by 2030. Despite campaign pledges against fracking, President Claudia Sheinbaum has authorized its use, prompting criticism from environmental groups who warn of the practice’s environmental risks and incompatibility with Mexico’s climate commitments. Pemex also plans to involve the private sector to accelerate natural gas production, targeting 5 billion cubic feet per day by 2028, ahead of prior goals. However, Pemex’s financial struggles, including nearly $23 billion in unpaid bills to suppliers, threaten the stability of its operations and raise concerns about meeting production targets, potentially undermining Mexico's energy market credibility. The company cites recent debt offerings and technological advancements to mitigate environmental and liquidity challenges, but supplier confidence remains cautious amid ongoing payment delays.