U.S.-Mexico Energy:

The U.S. Reaction to Recent Reforms in Mexico's Petrochemical Industry

NSIAD-91-212: Published: May 3, 1991. Publicly Released: May 21, 1991.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO examined recent reforms in Mexico's petrochemical industry.

GAO found that: (1) Mexico's petrochemical industry faced shortages in supplies of basic petrochemicals and investment funds; (2) Mexico lacked financial resources for natural gas, the primary raw material for the petrochemical industry, exploration, and development; (3) the Mexican government had the exclusive right to produce and distribute all basic petrochemicals, but foreign investors may now acquire 100-percent ownership of a secondary petrochemical plant if they establish a special trust with a Mexican credit institution; (4) the Mexican-government-owned oil company, Petroleos Mexicanos (PEMEX), created a program to obtain private or foreign investment in its basic petrochemical plants, but PEMEX would remain the operator; (5) Mexican petrochemical investment reforms are subject to a risk of reversal, because they were created by administrative decree, not by law; (6) Mexico's accessibility to raw materials makes it the most economical place for U.S. producers of secondary petrochemicals to locate; and (7) the U.S. and Mexican petrochemical industries are complimentary.

Nov 19, 2020

Nov 9, 2020

Oct 27, 2020

Oct 2, 2020

Sep 22, 2020

Sep 15, 2020

Sep 14, 2020

Aug 27, 2020

Jul 28, 2020

Looking for more? Browse all our products here