Petróleos Mexicanos

▪ Mexican company

byname  Pemex 

      state-owned Mexican company, a producer, refiner, and distributor of oil, natural gas, and petroleum derivatives. It is the largest Latin American oil company. Its headquarters are in Mexico City.

      Commercial production of crude oil in Mexico began in 1901 at Ebano, near Tampico, and during the first quarter of the 20th century Mexico produced nearly one-fourth of the world's oil annually. The development of huge oil fields in Texas and the Middle East and the rapid exhaustion of some of Mexico's oil reservoirs, however, diminished Mexico's share of world production. After prolonged controversy, President Lázaro Cárdenas expropriated all foreign oil interests on March 18, 1938, and set up Pemex to manage the consolidated industry.

      Since its formation, Pemex has carried on a vigorous exploration program, sinking hundreds of exploration and development wells per year. Under Mexican president José López Portillo (López Portillo, José), Pemex in the 1970s began the exploitation of huge, newly discovered oil reserves in Tabasco and Chiapas states and offshore in the Gulf of Mexico. His government's ambitious expansion of Pemex's extraction and processing capabilities led to the tripling of Mexico's crude oil production in the years from 1976 to 1982.

      Pemex is an integrated petroleum company, engaging in oil and gas exploration, production, refining, transportation, storage, distribution, and sales. Most of the production comes from the states of Veracruz and Tabasco, which also produces almost half the country's natural gas. The company has been a major world exporter of fossil fuel since Mexico became self-sufficient in crude oil in 1974. In 2008 the Mexican Congress passed a series of energy reforms that included provisions to allow private investment in Pemex. The approval was highly controversial, as the oil industry is required by the Mexican constitution to remain state-owned.

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