Mexico moves to re-start fracking

The technique is controversial in Mexico due to environmental concerns  

WHAT Mexico looks set to re-start fracking

WHY Mexico imports much gas and has yet to tap its own reserves fully

WHAT NEXT Mexico seeks to produce as much gas domestically as it consumes

Mexico is moving toward a potential reopening of hydraulic fracturing as part of a broader push to reduce its heavy dependence on imported gas, a shift that marks both a strategic pivot in energy policy and a political departure from past commitments.

On April 9, the government said it would evaluate fracking technologies while state oil company Pemex unveiled plans to nearly quadruple domestic gas production over the next decade.

Pemex director Víctor Rodríguez Padilla told a presidential press conference that Mexico was at a “critical moment,” highlighting the country’s significant untapped reserves—estimated at 83 trillion cubic feet (2.35 trillion cubic metres) of conventional gas and 141 trillion cubic feet (3.99 trillion cubic metres) in unconventional shale resources.

"We are in a critical moment and we are in a position to take advantage of them given the significant consumption we have in the country," he said.

Mexico currently consumes around 9bn cubic feet (255mn cubic metres) of natural gas per day, but produces only 2.3bn cubic feet (65.1mn cubic metres) , importing roughly 75% of its supply, primarily from Texas where gas is extracted using fracking.

Energy Secretary Luz Elena González warned that this reliance exposes the country to price volatility, supply disruptions and external risks such as climate events or geopolitical tensions. Pemex aims to raise production to more than 8.6 billion cubic feet (243mn cubic metres) per day within 10 years, bringing output close to current demand.

President Sheinbaum’s U-turn

President Claudia Sheinbaum acknowledged the environmental concerns surrounding fracking but said the government would explore whether newer technologies could mitigate its impact. She announced the creation of a scientific committee of national and international experts to assess whether unconventional gas extraction could be carried out sustainably.

“If we are going to exploit unconventional gas, it has to be done in a sustainable way,” she said.

According to sources cited by El País who participated in the technical and financial planning process, the decision has already been taken. Sheinbaum's public framing of it as a possibility under evaluation is a political management exercise rather than a genuine open question, said the sources.

Sheinbaum’s announcement represents a significant political shift. Sheinbaum had previously pledged to ban fracking, aligning herself with the position of her predecessor and mentor Andrés Manuel López Obrador and the broader environmental stance of the ruling Morena party.

López Obrador had also banned fracking, in line with environmentalist organisations. Sheinbaum ran on a platform of continuity with his legacy.

Her reversal has been framed as a pragmatic response to energy security concerns, with advisers arguing that true energy sovereignty is incompatible with reliance on a single foreign supplier.

The decision is striking given Sheinbaum's background. She holds a degree in physics and a postgraduate qualification in energy engineering, published research in the 1990s that helped establish her as a pioneer of climate change studies in Mexico, and participated as a co-author in Intergovernmental Panel on Climate Change (IPCC) research on industrial greenhouse gas emissions.

As a presidential candidate she explicitly promised fracking would not be used under her government. She repeated the pledge at her first major public event as president.

Morena divisions

The move has exposed divisions within Morena. Some figures, such as MP Alfonso Ramírez Cuéllar, have defended the policy as a necessary adjustment to economic realities. Others, including MP Manuel Vázquez Arellano, have strongly opposed it, warning that no extractive method can be environmentally friendly and urging investment in renewable energy solutions instead.

Environmental groups have also rejected the premise of “sustainable fracking.” The Mexican Alliance Against Fracking, a coalition of more than 40 organisations, argues that wastewater treatment at the scale required is costly and not standard practice even in the United States, and that Mexico’s potential reserves would not be sufficient to meet national demand. The group has accused the government of betraying its electoral commitments.

Beyond political and environmental concerns, significant economic and logistical challenges remain.

Analysts say state company Pemex – the most indebted oil company globally -  lacks the financial capacity to develop unconventional resources on its own and will need private sector participation. This would require creating conditions of legal and economic certainty to attract investors, as well as tendering exploration and production contracts to smaller, specialised companies.

Investment challenges

Infrastructure gaps pose another major obstacle.  Developing fracking operations would require substantial investment in electricity supply, road access and supply chains to reach prospective fields.

Costs are also considerably higher than in the United States: drilling a well can cost between $7mn and $8mn in Mexico, compared with $1mn to $2mn north of the border, where infrastructure is already well established.

Experts also point to regional challenges, particularly in areas such as Tamaulipas, where port and logistics capacity would need to be expanded. Previous efforts to develop cross-border infrastructure cooperation, such as a proposed agreement between the port of Corpus Christi and Tampico, were abandoned under the prior administration.

While some analysts acknowledge that advances in drilling techniques and water treatment have improved the environmental profile of fracking, they stress that strict regulatory oversight would be essential. As one expert noted, the development of unconventional resources “is not going to be resolved overnight.”