President Claudia Sheinbaum has reintroduced hydraulic fracturing—or fracking—as a core element of her Mexico energy plan, marking a dramatic shift from previous federal policy and drawing sharp reactions from environmental groups and energy analysts alike.
The announcement came during the presentation of the government’s 2025–2035 strategic framework to stabilize and modernize Pemex, the state oil company, which is under pressure from high debt and declining production.
The plan, billed as both a financial rescue and a path to energy self-sufficiency, includes a renewed focus on unconventional gas extraction, a move Sheinbaum says is necessary to meet national demand and ensure long-term energy security.
A policy reversal for practical reasons
Sheinbaum’s embrace of fracking is a clear departure from her predecessor Andrés Manuel López Obrador (AMLO), who prohibited the practice outright in 2019 amid public opposition and environmental concerns.
But the current administration argues the context has changed. Pemex, burdened by one of the oil industry’s largest debt loads globally, now requires a stronger production base to survive.
“This isn’t about ideology,” said an energy official present at the announcement. “This is about securing natural gas for our industries and our homes—and doing so with fewer imports.”
Mexico currently relies on the United States for over 70% of its natural gas supply, most of it through pipelines from Texas. That dependence, according to Sheinbaum’s team, has become a strategic vulnerability, especially as global energy markets shift and U.S. export prices rise.
Massive reserves left untapped
The government estimates Mexico holds nearly 64 billion barrels of oil equivalent (BOE) in technically recoverable unconventional reserves, much of it in the Burgos and Sabinas basins in northern Mexico.
Sheinbaum’s Mexico energy plan seeks to unlock a portion of those reserves using horizontal drilling and fracking technologies that Pemex once studied but never fully deployed.
Officials emphasized that new fracking projects would comply with “strict environmental and social standards,” although those standards have not yet been publicly detailed.
The energy ministry has said it will prioritize projects in areas with minimal water stress and low population density, to reduce risk of public opposition.
Pemex’s financial lifeline
In addition to increased exploration and production, the 10-year strategy includes measures to reduce Pemex’s debt, which stands at over $105 billion USD.
The Finance Ministry and Banobras, a federal development bank, announced the creation of a 250 billion peso investment vehicle to fund new infrastructure and upstream projects.
Sheinbaum’s administration claims that with this support, Pemex will become financially independent by 2027, no longer needing government bailouts to cover debt service or operations.
“The state will not let Pemex fall—but we expect it to stand on its own within two years,” Sheinbaum said.
Critics voice environmental concerns
Environmental organizations reacted immediately to the reintroduction of fracking, warning of the risks to groundwater, air quality, and seismic stability.
“Fracking is a reckless move,” said a spokesperson for the Mexican Alliance Against Fracking. “It will bring temporary relief at a high long-term cost to communities and ecosystems.”
Others questioned whether Pemex has the technical capacity to manage fracking safely, especially given its spotty track record with environmental compliance and operational transparency.
Some local leaders in northern states expressed concern as well, citing past community resistance to exploratory drilling.
But industry insiders were more optimistic. “This is overdue,” said an analyst at an energy consultancy based in Monterrey. “Mexico has a wealth of natural gas and the technology to develop it. The question is whether the government can manage it responsibly.”
Political risk, technical hurdles
Fracking has long been a politically sensitive subject in Mexico. Even as Sheinbaum distances herself from AMLO’s hardline stance, she must tread carefully with Morena’s base, which includes many environmentalist voters.
Her challenge now is to show that the Mexico energy plan delivers tangible results without triggering the kind of public backlash that led to bans in previous years.
In practical terms, the road ahead will be difficult. Pemex will need to partner with service companies that have the technical experience to execute hydraulic fracturing efficiently. Infrastructure in fracking regions is underdeveloped, and communities may demand compensation or concessions.
Still, the government says drilling could begin within 18 months.
Balancing priorities
Sheinbaum’s energy shift reflects the delicate balancing act of her presidency: appeasing public concerns while avoiding energy shortfalls, preserving national control over oil and gas while modernizing the tools of extraction, and reducing emissions while relying on fossil fuels to fund the transition.
The Pemex strategy includes planned investments in solar and wind, but gas is viewed as the immediate bridge to cleaner power and industrial growth.
“This isn’t a full return to hydrocarbons,” a senior official said. “It’s a pragmatic move to give Mexico energy independence while preparing for a renewable future.”
