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Pemex's platform in the Bay of Campeche.
Pemex's platform in the Bay of Campeche.
(VICTOR RUIZ/REUTERS)

Mexican oil reforms both challenge and opportunity for Canada

The U.S. government has run new numbers on the potential for Mexican oil production as the country finalizes sweeping reforms to allow billions of dollars in foreign investment in the sector. Canadian oil producers need to take a good look.

The projection by the U.S. Energy Information Administration, published Monday, shows healthy gains in Mexican output in the coming decades, wiping away previous fears of steep declines. That stands to reward Canadian companies wanting in on the action, but also spells risk for Canada’s own oil as competition heats up in the sought-after U.S. Gulf Coast market.