Mexico’s 2018 Election Could Derail Its Oil Boom

9/17/2017 Oil Price

Three years ago, Mexico opened its energy sector to private investments in a landmark energy reform that ended more than seven decades of monopoly of its state firm, Pemex. Now Mexico has begun liberalizing gasoline prices as well.

After an initially slow start to attracting foreign investment, Mexico’s offshore oil auctions have recently started paying off, after an alliance (including foreign firms) announced a “world class discovery” estimated to hold more than 1 billion barrels of oil in place—one of the major global discoveries in the past five years.

In addition, supermajors Exxon, Chevron, and BP are opening or plan to open their first service stations to tap into the Mexican refined products market. Shell is the latest of Big Oil that entered the retail market, pledging US$1 billion in investment over the next 10 years.

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Protecting Mexico’s Energy Reforms

8/14/2017 RealClear World

By Duncan Wood

When President Salinas Gortari signed the North Atlantic Free Trade Agreement for Mexico in 1992, he provided certainty and stability for investors hoping to benefit from Mexico’s emerging manufacturing base. The trade deal locked in the benefits of domestic economic reforms and liberalization introduced in the late 1980s and early 1990s. The steady flow of foreign investment that followed turned Mexico into a manufacturing powerhouse.

When negotiators from Mexico, Canada, and the United States start talks on Wednesday to renegotiate aspects of the 23-year-old agreement, they too hope to lock in recently won gains in Mexico that are of enormous interest to all parties. One priority must be to defend hard-won reforms in Mexico’s energy sector — reforms meant to change a sector that was closed and monopolistic for 75 years. Since U.S. President Donald Trump’s inauguration in January, a broad-based movement has emerged that aims to defend two decades of free trade in the region and to insist on the urgency of “doing no harm” during renegotiation. NAFTA’s defenders have managed to influence a change in language: Where commentators once spoke of renegotiating a pact Trump characterized as the worst trade deal signed by the United States, the negotiations are now widely framed as an opportunity to modernize a venerable trade deal so that it more accurately reflects the needs and priorities of the 21st century economy.

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After the Storm in U.S.-Mexico Relations

3/31/2017 The Wilson Quarterly

Articles by Duncan Wood, Christopher Wilson, Andrew Selee, Eric L. Olson, Earl Anthony Wayne & Arturo Sarukhan

The relationship between Mexico and the United States is facing its most severe test in decades. Although a new tone and new ideas are needed, the economic, political, and security fundamentals matter more than ever.

Browse the full Winter 2017 issue of Wilson Quarterly here…

Leveraging the U.S.-Mexico Relationship to Strengthen Our Economies, by Christopher Wilson

A New Migration Agenda Between the United States and Mexico, by Andrew Selee

The Merida Initiative and Shared Responsibility in U.S.-Mexico Security Relations, by Eric L. Olson

U.S.-Mexico Energy and Climate Collaboration, by Duncan Wood

Toward a North American Foreign Policy Footprint, by Earl Anthony Wayne & Arturo Sarukhan

 

NEW SERIES | Charting a New Course: Policy Options for the Next Stage in U.S.-Mexico Relations

The Mexico Institute is pleased to announce the launch of its series, Charting a New Course: Policy Options for the Next Stage in U.S.-Mexico Relations, which reevaluates the U.S.-Mexico relationship and explores how both nations can improve upon the bilateral agenda given changes in the regional and global context. The series includes original content, including reports, videos, and more.

Browse the series

Mexico loses millions of dollars daily to fuel theft

10/17/16 PRI

gas pipeline and gaugeMexico is opening up to private gasoline retailers, and a new wave of fuel imported from the United States is expected to follow.

But here’s a not-so-little problem: Gangs steal a huge amount of gas, and loose law enforcement and corruption let it happen.

For the past decade or so, there’ve been widespread reports of drug cartels putting illegal taps in the fuel pipeline network. The state-run oil company Pemex has documented that some of its workers and contractors have participated, after receiving bribes or even death threats.

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Mexico, U.S. join hands offshore

10/06/16 UPI

gas pipeline in green fieldRegional cooperation is a critical component for the shared environmental objectives on energy work in the Gulf of Mexico, U.S. and Mexican officials said.

The Mexican Agency for Safety, Energy and the Environment and the U.S. Bureau of Ocean Energy Management signed a letter of intent to work more closely on environmental matters related to hydrocarbon activity in shared maritime waters.

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Mexico Awards Contracts to Secure Renewable Energy

09/29/2016 The Wall Street Journal 

eneryMEXICO CITY—Mexico’s opening of its electricity market after decades of state control is driving fierce competition among suppliers of clean energy and pushing prices down, as renewable energies gain traction across Latin America.

Mexico’s government, following the launch this year of a wholesale electricity market under an independent system operator, this year held its first auctions in which companies made bids to sell renewable energy under long-term contracts to state-owned utility Comisión Federal de Electricidad, or CFE, starting in 2018.

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