Mexico's Oil Safety Crisis Deepens as Budget Cuts Cripple Oversight in 2026

Mexico’s oil and gas sector has faced growing safety concerns in early 2026. Pemex recorded its worst start to a year for serious incidents since 2012, raising questions about oversight. The agency responsible for regulation, ASEA, has seen its budget shrink by 63% in real terms since 2018. ASEA was created to regulate industrial safety and environmental protection across Mexico’s oil and gas industry. Its responsibilities cover oil barrels, natural gas, onshore wells, offshore platforms, and related facilities. Yet its funding has dropped sharply over the years.

In 2018, ASEA operated with 970 million pesos. By 2026, its approved budget stands at just 353 million pesos. A small increase of 18% in 2025 did little to curb ongoing incidents. Problems extend beyond Pemex. Private gas companies have also suffered spills, fires, and leaks. One of the deadliest incidents occurred in September 2025, when an explosion on the La Concordia bridge in Iztapalapa killed 32 people. More recently, hydrocarbon slicks were detected in the Gulf of Mexico in February 2026. Reports indicate the incident was initially hidden from Víctor Rodríguez Padilla, then-director of Pemex. Susana Cazorla, a consulting partner at SICEnrgy, argues that stronger public demand is needed. She believes this could push for higher budgets and better resource management at ASEA.

The drop in ASEA’s budget coincides with a rise in serious incidents across the sector. With 353 million pesos allocated for 2026, the agency faces ongoing challenges in enforcement. Safety failures continue to affect both state-run and private companies.