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This report concerns the outlook for exploration management in Mexico. The principal concern is that Pemex is not organized for the effort to replace with new discoveries the million daily barrels of oil that Cantarell has ceased to produce since 2004. The report benefits from not-for-attribution discussions (as well as edits of drafts) with exploration professionals in some half-dozen oil companies, including Pemex. The report also benefitted from the close reading given by an IOC exploration manager whose suggestions sharpened the language of the reports and graphics. The report first considers those factors that contribute to the success of IOCs and Pemex in their exploration efforts. The report then identifies factors that limit the ability of Pemex and IOCs to discover commercial oil deposits, with particular reference to deepwater areas. The particular focus of the report is on those factors—legal, organizational and cultural—that, together hinder Pemex’s exploration efforts. The report draws on presentations by present and former Pemex executives and managers as well as government officials and industry sources during the period April-October 2008. The report builds on our analysis of historical statistics, regulatory and legal concepts, and institutional data. Fig. 1 is a Venn diagram that identifies positive factors affecting exploration for Pemex and the IOCs, showing, also, where there are common issues. Fig. 2 identifies negative factors affecting exploration, including ones shared by both Pemex and IOCs. Fig. 9 plots investment in exploration between 2000-07. Table 2 is a checklist of features of organization and management related to exploration, comparing Pemex and IOCs.