Energy reform will unleash Mexico’s economy – Minister of Economy

August 21, 2014

08/20/14 By Ildefonso Guajardo. Dallas Morning News

President Enrique Peña Nieto took office in late 2012 and set to work on an ambitious agenda for change and transformation. In under two years, the administration has enacted structural reforms to free up domestic markets, making the country more productive and competitive and enabling our citizens to benefit through better jobs, higher wages and rising standards of living.

This month, Mexico put in place new laws that govern the opening of the energy and electricity sectors. This historic moment affirms our standing as an emerging economic power and signals the beginning of a new era of growth and prosperity for the Mexican people.

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Mexico: Mining Company Lied on Spill, Official Says

August 21, 2014

08/19/14 New York Times

MiningEnvironment Secretary Juan Jose Guerra Abud said Tuesday that a mining company lied about a spill of 10 million gallons of acids and heavy metals that contaminated two rivers and a dam downstream. Mr. Guerra Abud said the mine claimed the spill on Aug. 7 in the northern state of Sonora was caused by unusually heavy rain but called that “totally false.” He said the Buenavista del Cobre copper mine, owned by the Grupo Mexico consortium, could face fines of up to $3 million in safety and environmental violations.

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Mexico’s Pemex Adjusts Structure to Compete With Private Companies

August 21, 2014

08/20/14 The Wall Street Journal

pemex21State-owned oil company Petróleos Mexicanos said Wednesday that it is creating drilling, logistics and electricity affiliates as it restructures its operations to compete with private oil firms.

Pemex, as the company is known, said in a news release that the affiliates would provide services to “new actors in the industry,” and that it would produce electricity through cogeneration—the use of heat from industrial operations to create power—and sell it on the open market.

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Grupo Mexico Faces Charges Over Acid Spill

August 20, 2014

08/19/14 The Wall Street Journal

MiningMexican environmental authorities are pressing charges against mining company Grupo Mexico S.A.B. de C.V. over an acid spill in northwestern Sonora state that contaminated two rivers and left thousands of people without drinking water.

The federal environmental protection agency Profepa said Monday it has filed charges with the Federal Attorney General’s Office against Grupo Mexico mining units Buenavista del Cobre and Minera Mexico for alleged violations of environmental laws, including possible negligence in the handling of dangerous substances.

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Mexico to Award $4.9 Billion of Power Plants and Pipes

August 19, 2014

08/18/14 Bloomberg

Energy -electricity_transmission_linesComision Federal de Electricidad, Mexico’s state power company, will auction $4.9 billion in pipeline and electricity projects as the energy industry opens up to private investment for the first time since 1938.

CFE will offer contracts for four power plants, four pipelines and eight electricity transmission and distribution projects by next year, Chief Executive Officer Enrique Ochoa told reporters today in Mexico City. More than half of the investment would be for an 889-megawatt plant in northeastern Mexico and a 786-megawatt plant in western Mexico, contracts for which will be awarded in the first half of 2015.

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Will Security Problems Hamper Mexico’s Energy Boom?

August 18, 2014

08/18/14 By Nathaniel Parish Flannery. Forbes 

Energy -electricity_transmission_linesMexico has attracted attention for passing secondary laws that will end its state oil monopoly and open the country’s borders to new types of foreign investment. As Juan Montes explained in a recent article, “Under the new law, foreign and private domestic energy companies will be able to explore, produce and refine oil for the first time since Mexico nationalized its oil industry in 1938 and transformed oil into a symbol of national pride. State-owned oil giant Petróleos Mexicanos, or Pemex, was created that year, and has since been the only company allowed to exploit the country’s oil and gas resources, turning Mexico into the world’s ninth-largest oil producer.”

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Mexico’s Energy Sector Reform Worth The 76-Year Wait

August 18, 2014

08/15/14 By Gaurav Sharma. Forbes

energy- oil pumps 2Over the last decade, oil and gas supply-side analysts have noted the decline in Mexico’s hydrocarbon output with a fair degree of dismay. Ageing infrastructure, layers of red tape and alleged corruption have seen the country’s output drop from 3.6 million barrels per day (bpd) in 2004 to the current output level of just 2.5 million bpd.

Mexican market analysts’ standard response to the decline was a shrug of the shoulders accompanied by an all too familiar quip, “what do you expect – that’s Mexico.” The capacity to change things by bringing in private sector participation in general, and foreign direct investment in particular, was hamstrung by the concept of state ownership of natural resources enshrined in Mexico’s constitution since 1938.

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UT, A&M have energy expertise Mexico could tap

August 18, 2014

08/11/14 Houston Chronicle

energy -drilling_platform_in_seaAs Mexico ends its 75-year-old state monopoly and opens oil and gas production to foreign investment, the nation’s need for expertise – especially for petroleum engineers – will be great.

That’s prompted at least two Texas universities to establish relationships with universities in Mexico to train professionals and share knowledge.

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Energy Reform Series – The Expert Take

August 14, 2014

cover ER seriesOn Monday August 11, Mexican President Enrique Peña Nieto enacted the secondary legislation of the energy reform, composed of 9 new laws and amendments to 12 existing ones. With this action, a new chapter in the economic development of Mexico begins.

Read two articles about Mexico’s Energy Reform. First, a piece written by Jesús Reyes Heroles on energy reform and democracy. Second, Pedro Valenzuela and Duncan Wood assess the energy reform and its process following the enactment of the secondary legislation. Also, the Mexico Institute charts the course of the energy reform beginning in 2012, when Enrique Peña Nieto, then-Candidate for the Mexican Presidency, made the commitment to reform the energy sector by 2015.

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Mexico awards 83% of oil reserves to state firm Pemex

August 14, 2014

08/13/14 BBC News

PemexThe Mexican government has granted national oil firm Petroleos Mexicanos (Pemex) the rights to 83% of the country’s proven and probable oil reserves, as part of a broad overhaul.

But Pemex will only get 21% of possible reserves, less than it had asked for.

Those are the areas where oil has not yet been discovered and which will require a greater degree of investment and exploration to fully exploit.

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