Mexico Energy Policy
August 6, 2013
The new administration that has taken control of Mexico, under President Enrique Pena Nieto, has made large strides in the direction of the nation’s state-run energy sector. With numerous conversations about this potentially profitable sector, a reform has been established and it provides multiple benefits to the country, including manufacturing in Mexico. Throughout this reform, the Mexican government hopes to significantly improve its ranking against competitors and continues to look to improve its energy output and development to investors.
Over the last 80 years, Mexico’s energy sector has been closed to foreigners. With the government’s interest and reform underway, it will begin to allow the country to share its unique industry with some private energy firms and eventually free up some of the Petroleos Mexicanos or Pemex resources.
With neighboring countries, such as the United States and Canada, many want a better understanding of how private investors can participate in this progressive movement directed by President Nieto. This new government is seizing the opportunity, capitalizing on the close relations it has with neighboring countries and the overall impact. This new relationship could potentially allow the United States to utilize their progressive technologies, and Mexico to manage its deep-water oil deposits.
One area that brings most of the attention and popularity is the amount of petroleum and natural reserves throughout Mexico. In order for this to be profitable for Mexico, they need to seek modernization and find a suitable option for the country.
In order for this proposal to go through, Mexico will need to amend its constitution, as well as a 2/3 party vote in its favor. However, Mexico is continuing to remain confident that this change in the energy sector won’t be hard to deliver. The energy sector is just one of the many profitable areas Mexico is continuing to leverage. Mexico manufacturing could see a positive future if this reform passes and is shared appropriately with investors.