Mexico has prohibited hydraulic fracturing for oil and gas in a key basin, a policy shift that restricts unconventional production capacity in one of the country's most significant energy regions.
The ban, announced by President Claudia Sheinbaum, targets a specific geological area where fracking operations were previously permitted or under consideration.
The decision aligns with Sheinbaum's long-standing environmental stance.
Before assuming the presidency in 2024, she was a vocal critic of fracking, citing concerns over environmental degradation and social impacts.
The prohibition effectively removes a potential source of incremental supply growth in Mexico's upstream sector.
This development adds to existing supply-side constraints in global energy markets.