Politics Won't Slow Mexico As It Barrels Toward Free Market Energy Economy

Politics Won't Slow Mexico As It Barrels Toward Free Market Energy Economy
Oil and gas officials tell Mexico Gas Summit in San Antonio audience that 2018's post-election government may accelerate energy reforms intended to open the nation to more foreign investment.

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.


Most Popular Articles