A rash of serious accidents ranging from oil pipeline ruptures to leaks, spills, and explosions has heightened public concerns about the compliance and performance of Mexico's hydrocarbon sector with health, safety, and environmental issues. The increasing scrutiny generated by the accidents has shown that Mexican society is much less tolerant of environmental damage and safety concerns than it has been in the past.
- The recent problems could generate stiffer opposition by activist groups and other stakeholders to expansion in new areas, bringing longer project cycles and higher development costs.
- The environmental damage and public discontent will likely drive stricter enforcement and supervision of the hydrocarbon sector in particular and of the energy sector in general.
- Continued deterioration of the environmental record and further accidents could drive further third-party capital participation in the sector, including through a larger role in pipeline operations or a more dynamic position in other functions in the value chain.
