Mexico has proposed far-reaching reforms to its energy sector which will liberalize investment opportunities and dramatically increase overall economic competitiveness. Subject to passage in the legislature, the Mexican energy reforms contemplate opening up the energy industry by bringing in private partners to participate in the energy sector, largely through joint ventures.
Once fully implemented, Mexico’s energy reforms have the potential to transform this sector while giving a significant boost to broader competitiveness issues given current high energy costs. Increasing Mexican competitiveness would be very good for the United States. According to the National Bureau of Economic Research, 40 percent of Mexico’s exports to the United States contain U.S.-produced input. Therefore, a growing Mexican economy will draw in increasing U.S. production supporting economic growth and contributing to U.S. export statistics.
Mexico: An Opening for Energy Reform provides an overview of the Mexican energy reforms, analyzing their projected impact, their significance, and their implications for North America. The report concludes that the Mexican economy will benefit through increased investment, with reduced energy costs leading to higher competitiveness. Furthermore, the reforms will provide capital towards development of shale oil and gas, as well as deepwater fields in the Gulf of Mexico. The success of this initiative will represent a major milestone as Mexico becomes a magnet for foreign investment.
- Download the report.
- AS/COA's Energy Action Group (EAG) brings together the public and private sectors to develop strategic energy policies for the Americas. The EAG hosts forums in cities across the Americas and publishes working papers and recommendations on key energy and climate topics.
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