Mexico’s government has maintained the ban on fracking in the Burgos Basin, the country’s most important shale basin, following a moratorium instituted by former President Andres Manuel Lopez Obrador in 2019. This decision keeps Mexico dependent on US natural gas imports, which account for approximately 80 percent of its energy needs, while the Burgos Basin holds roughly two-thirds of Mexico’s total technically recoverable shale gas resources. The Sheinbaum administration is considering a ten-year strategy to develop unconventional resources, but water scarcity and limited pipeline infrastructure in northern Mexico remain obstacles. For energy markets, this prohibition reinforces US natural gas flows southward, benefiting American producers and midstream pipeline operators.
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