Mexico's Energy Gamble: Cutting Pemex Support Amid Oil Price Bump The Mexican government's decision to slash financial assistance for state owned energy giant Pemex by up to 70% has sent shockwaves through the industry, sparking debate over whether this move is a shrewd bet on rising oil prices or a reckless gamble with the company's future.
At first glance, it seems counterintuitive that Mexico would reduce support for its struggling energy major just as oil prices are surging.
Pemex's continued struggles to pay down debt and boost production have been well documented.