Mexico’s Energy Reform Looks Ahead
Mexico’s Energy Reform Looks Ahead
A newly released energy white paper by AS/COA shows Mexico is pushing hard for an energy overhaul due to a steep slump in oil output.
Mexico’s President Enrique Pena Nieto will sign his landmark energy reform into law in the coming days after Congress gave final approval to the historic overhaul this week. The reform, that ends more than 75 years of monopolies of state-owned oil company Pemex and national power company CFE, will liberalize investment opportunities. Private investors are now lining up to place their bids and sign profit-sharing contracts. U.S. giant ExxonMobil and British rival BP are leading an “energy task force” within the American Chamber of Commerce of Mexico and others like Chevron and Royal Dutch Shell are eyeing the prize....
The country has been pushing hard for the overhaul due to a steep slump in oil output in Latin America’s second largest economy. Oil production in Mexico as a whole has fallen from 3.8 million barrels per day in 2004 to 2.5 million b/d in 2013. Production of the Cantarell oil field, the most lucrative of Mexico’s shallow water reserves, peaked in 2003 at 2.1 million b/d , and is now producing less than one quarter of that, read a recently released Americas Society/Council of the Americas white paper, Mexico: An Opening for Energy Reform....
