Politics Won't Slow Mexico As It Barrels Toward Free Market Energy Economy
It took more than 20 years and a consensus of several political parties to finally move Mexico into a free market energy economy, and it’s a reform package that won’t be thwarted any faster, officials say.
In fact, energy economists and Mexican officials said during the Third Mexico Gas Summit in San Antonio on May 24, it would be more likely to accelerate the process than throw the nation’s pursuit off track.
As Héctor Moreira Rodríguez, a member of the National Hydrocarbons Commission, explained, the next president would to persuade two-thirds of the country’s congress to change paths, and that’s an unlikely outcome.
“You need change by coalition – that’s why it took so long,” he said. “I don’t really see any scenario in which somebody wins so much they have 70 percent of congress. The law will continue to be the law; regulations will continue to be the regulations. A new president might be able to accelerate it, but will never able to change the law.”
Current officials are moving quickly to complete a slate of new regulations to be in place by Dec. 31, 2017, said Daniela Flores Ramírez, deputy general director of planning for Natural Gas and Petrochemicals at the Ministry of Energy (SENER).
“We’re not leaving any loose ends in that regard,” she said.
But meanwhile, the reform government has its hands full. Outreach to indigenous populations continues to be a challenge, some regulations are being built from scratch and a dearth of nationwide infrastructure must be addressed, the officials said.
For its part, though, leaders at Petróleos Mexicanos (PEMEX) – Mexico’s state-owned oil and gas monopoly for 80 years – appear to understand the company must make peace with the reforms. Pemex’s implementation has been “surprisingly rapid,” Moreira Rodríguez said.
“Pemex had to learn fast,” he said. “It’s necessarily for the survival of the company.”
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Senior Editor | Rigzone
- The Rigzone Interview: Private Equity Cash Focuses on Oil, Gas Development
- Could Argentinian Politics Beat the Vaca Muerta?
- The Rigzone Interview: Oil, Gas Goes Digital for Safety, Speed
- Deal Of The Month: EQT, Rice Energy Merge in Mega Marcellus $6.7B Gas Deal
- OpEd: OPEC Production Cuts Fail, Markets Pay for Underestimating US Shale
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Subsea7 Secures Contract to Service Woodside's Trion
- These Factors Helped Brent Oil Price Break Above $85
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- Gaz System to Acquire Gas Storage Poland
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension