Keynote Speech: Opportunities and Challenges for Mexico Today

10/29/2015 The International Trade Journal

By Diana Villiers Negroponte


Since its pre-colonial history, Mexico has demonstrated two contrary tendencies: the outward-looking, global trader and the protective, nationalist instinct. Today, the seven major constitutional reforms of the PRI government reflect the former. However, the teacher’s union, some presidential advisors, and the criminal justice system reflect a preference for the latter. The more progressive sectors of Mexican society assert the need to participate in the global economy, but latent protective and nationalist tendencies throw up challenges. This article examines several contemporary examples of each tendency and demonstrates how they coexist uneasily in modern Mexico.

This article was published by our Advisory Board Member Diana Villiers Negroponte in the International Trade Journal (Volume 29, Issue 5, 2015). Click here to read the full article


No Keystone, No Problem: TransCanada Turns to Mexico Expansion

oil pipeline150Bloomberg Business 11/17/2015

Days after the U.S. spurned TransCanada Corp.’s proposal to expand its Keystone pipeline network across North America, Mexico opened its arms.

TransCanada won the rights last week for its sixth pipeline in Mexico, one of the company’s key targets for growth. The Nov. 10 decision came four days after the U.S. denied TransCanada’s bid to build its Keystone XL oil sands project across the border into Nebraska where it would connect to existing pipes leading to Gulf Coast refineries.

Mexico’s need for foreign investment to help the nation improve its infrastructure is a welcome opportunity for TransCanada after losing its seven-year battle to complete Keystone XL. The Canadian company, which owns both pipelines and power plants, plans to invest more than $3 billion in the country by 2017, said Robert Jones, President of Mexico operations.

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Mexico asks to join IEA

Oil barrelsUnited Press International 11/17/2015

PARIS, Nov. 17 (UPI) — Mexico’s secretary of energy said from Paris his country submitted a formal request to join the Western-backed International Energy Agency.

Fatih Birol, executive director of the IEA, said reforms were putting the Mexican energy sector on a level playing field with member states.

“Mexico has made remarkable progress in transforming its energy sector into a market-oriented one that is based on the principles reflected in the IEA shared goals,” he said in a statement. “There is every reason to expect that this successful process will continue and be reinforced and accelerated by closer ties with the IEA.”

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Canada talks North American energy and climate accord with U.S., Mexico

climate-change-2The Globe and Mail 11/15/2015

The Liberal government is looking to elevate the discussion to conclude an overarching accord with the U.S. and Mexico on commercialization and deployment of low-carbon energy technologies and a common approach on reduction of greenhouse-gas emissions. President Barack Obama reached a similar deal earlier this year with Mexican President Enrique Pena Nieto.

One area of potential collaboration is in the international trade in carbon credits. The former Conservative government indicated it would meet its 2030 targets in part by purchasing international credits, essentially financing projects in other countries that can reduce GHG emissions far more cheaply than can be achieved at home. Mexico is eager to access Canadian and American markets to sell such credits.

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Thank Mexico for a U.S. Gas Market That Isn’t Even More Terrible

gas pipeline and gaugeBloomberg Business 11/10/2015

Think the slide in U.S. natural gas prices has been bad? Well, it would be even worse if Mexico wasn’t picking up at least some of the slack.

Gas flowing south over the border jumped 60 percent to average a record 3.26 billion cubic feet a day in August from the end of last year. Increased exports, helped by new pipelines, are shrinking the discounts for supplies at the West and South Texas gas hubs versus the U.S. benchmark.

Mexican power generators and industrial users taking advantage of cheap U.S. shale gas will more than double those pipeline flows in the next five years, said Citigroup Inc. and Genscape Inc. That will help support U.S. gas prices, which have slid to a three-year low because of a domestic glut and sluggish consumption.

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Chevron confirms ‘ significant’ deepwater Gulf of Mexico discovery

11/4/2015 Petro Global News 

energy - oil pumpsChevron Corporation said Friday that is has confirmed a significant find at the Anchor site in the U.S. Gulf of Mexico. “The positive results of our appraisal work at Anchor indicate a significant discovery of potentially hub class scale,” Chevron executive vice president of upstream  Jay Johnson said.

The original Anchor discovery well is located in Green Canyon Block 807, about 140 miles off the coast of Louisiana in 5,180 feet of water. The well was drilled in late 2014 to a depth of 33,750 feet and encountered 690 feet of net oil pay.

Appraisal drilling began in June 2015 and recently found 694 feet of net oil pay. To date, Chevron has confirmed a hydrocarbon column of at least 1,800 feet in the Lower Tertiary Wilcox reservoirs at Anchor. Complete appraisal of the field will require further delineation wells and technical studies, the company said.

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Sun Corridor Inc. looks to Mexico for growth

11/4/2015 Arizona Daily Star

202857618_223d565208_zEconomic growth, advocacy for the region and improved binational commerce with Mexico are the key areas Sun Corridor Inc. will focus on as it moves forward under its new name and expanded mission.

The group, which in May changed its name from Tucson Regional Economic Opportunities, was formed in 2005 as the area’s economic development entity. Over the last 10 years, officials said, it facilitated 110 relocations and major expansions in the region.

The result was an impact of $8 billion on the regional economy thanks to companies such as La Costeña, Ventana Roche,, Accelerate Diagnostics and HomeGoods, said Joe Snell, president and CEO of Sun Corridor Inc.

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