Mexico Shifts to Fracking Amid Soaring Energy Prices

Mexico is moving toward developing its unconventional natural gas reserves as global energy prices spike amid Middle East instability. President Claudia Sheinbaum announced the policy shift on Wednesday, citing the country’s heavy reliance on imported natural gas—primarily from the United States—which currently covers about three-quarters of domestic demand.

Mexico’s conventional gas fields are in decline, and the country has no domestic production capacity to meet growing needs. “If we continue like this, we’re going to import more and more natural gas,” Sheinbaum said. “The other options are what’s called shale gas, unconventional gas.”

Unconventional gas refers to natural gas trapped in dense rock formations such as shale, requiring hydraulic fracturing—commonly known as fracking—to extract. Development has been limited due to environmental concerns, high water usage, regulatory uncertainty, and political opposition.

Sheinbaum linked the policy change to global market volatility, triggered by the US-Israeli conflict with Iran. “What’s the problem with importing?” she asked rhetorically. “Just look at how lots of countries in the world are suffering because of what happened in Iran.”

Fuel and energy prices have surged since late February, with disruptions around the Strait of Hormuz—through which roughly one-fifth of global oil flows—keeping markets on edge. Oil prices briefly topped $100 per barrel amid uncertainty over supply routes and fragile ceasefire signals.

The announcement comes amid broader tensions between Mexico City and Washington. In January, US President Donald Trump threatened military action against drug cartels on Mexican soil, following the abduction of Venezuelan President Nicolás Maduro by US forces on alleged narcotics charges. Trump has also accused Mexico of being under cartel control and of “flooding” the US with drugs and migrants.

Mexico has cooperated on anti-drug efforts but firmly rejects foreign military presence. Sheinbaum has warned that any such action would violate national sovereignty. Trump also threatened 30% tariffs on Mexican imports last year, though these were later reduced after negotiations.

The shift toward unconventional gas marks a significant policy pivot as Mexico seeks to reduce energy dependence amid geopolitical instability and rising global energy costs.