BP Takes Measures to Make Mexico Second Largest Fuel Market

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Per BP plc 's BP chief operating officer, the company intends to make the Mexican fuel market it's second largest in the world after the United States.

The Mexican fuel market, which was recently liberalized after the law changes, permitted other players to participate except Pemex national oil company. BP was the first foreign oil major to set foot on Mexico's newly liberalized fuel sector.

In 2017, BP opened 220 new fuel stations worldwide, of which 130 were in Mexico. By 2021, BP plans to open 1500 sites in the country. The growth will be backed by 10% increase in demand over the next five years. BP's entry into the Mexican market has been appreciated.

However, BP will face several challenges, including the urgent need for new fuel storage and transport infrastructure. Therefore, the company is looking for partners to build infrastructure in the country.

BP is among the leading integrated energy players in the world. The company is continuously seeking opportunities to boost return for its shareholders.

Ramp up of key upstream projects convinced BP to project higher year-over-year production through 2018. For the January to March quarter of 2018, the integrated energy player expects output to be in line, sequentially. Healthy projected output amid the partial recovery in oil prices might reward the company with handsome cashflows.

Price Performance

During the last three months, BP's shares have lost 0.5% compared with the industry 's 1.9 decline.

Zacks Rank & Key Picks

BP carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Occidental Petroleum Corporation OXY , Pioneer Natural Resources Company PXD and ConocoPhillips COP . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Houston, TX-based Occidental Petroleum Corporation is an integrated oil and gas company. The company delivered an average positive earnings surprise of 24.57% in the preceding four quarters.

Headquartered at Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 66.92% in the preceding four quarters.

ConocoPhillips, based in Houston, TX, is a major global exploration and production company. The company delivered a positive earnings surprise of 144.45% in the preceding four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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