Turn to the nation's most objective and informative daily environmental news resource to learn how the United States and key players around the world are responding to the environmental...
By Emily Pickrell
Newly elected Mexican president Andres Manuel Lopez Obrador has promised to look hard at how the country has fared in opening its energy sector to international players, but outside observers believe foreign investment will remain.
Lopez Obrador, the winning candidate from the left-leaning Morena party—receiving a clear mandate for change with more than 50 percent of the vote—now must decide how to implement a platform that emphasizes Mexico’s sovereignty and nationalism, especially in the energy sector.
Oil exploration and production in particular have been a focal point. Lopez Obrador has vowed broad changes, including a review of all recently awarded oil contracts and participation in international energy organizations, such as OPEC.
These campaign promises focused on ensuring a continued primary role for Mexico’s national oil company, Petroleos Mexicanos, or Pemex, while pulling back from future international oil contracts.
“The review process in particular would effectively halt all new auctions of oil and gas assets,” wrote Moody’s Investors Service Inc. in a July 2 research note. “All of these measures would hurt Pemex and the Mexican oil and gas industry in both the short and long term.”
Yet many industry observers believe these goals will be tempered by Lopez Obrador’s need for a vibrant oil and gas sector, which currently provides roughly a third of the country’s budget.
“To deliver on his campaign promises, Lopez Obrador will need an energy sector that generates revenue during his six-year term,” said Ixchel Castro, the manager of Latin America oil and refining markets research with Wood Mackenzie, in a written statement. “This administration stands to reap the rewards of the reform—increased production, private investment and job creation—but this will require strong backing from both the incoming administration and government coalition support.”
Mexico has held several recent onshore and offshore oil and gas auctions that have resulted in awards for major oil companies, including Royal Dutch Shell Plc, Exxon Mobil Corp. and Chevron Corp., with a promised $100 billion investment in Mexico.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)