Given the significance of oil in Mexico’s economy and its historical influence on the country’s politics, society and culture, our analysis begins with a focus on liquids production. We examine the global shift toward a greener energy mix, addressing the question: "Is there still a place for oil and gas investments in a world with declining demand for oil?" In our view, there is. Production levels from oil developments tend to decline faster than demand, meaning oil production and investment will remain necessary. What will change is that future oil barrels will need to be not only economical but also "sustainable" or low-emission barrels. We benchmark Mexico and state-run energy giant Pemex in terms of emissions, emission-reduction targets and diversification strategies. We also explore the role of vehicle fleet electrification and Mexico’s potential through nearshoring of this supply chain, as well as the advantages of the country’s well-developed mining sector with considerable lithium reserves.

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