Energy Action Group
Energy Action Group
Americas Society/Council of the Americas 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.
We are grateful to Chevron, Inter-American Development Bank, and others for supporting this initiative.
(Image: Government of Brazil)
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While numerous countries possess an abundance of this resource, factors from rule of law to technology access represent barriers to exploiting shale gas reserves.
Christian Gómez Jr. Habla con la emisora El Sol sobre la integración energética de Norteamérica, y las oportunidades en Estados Unidos y México tras la aprobación de la reforma mexicana.
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Get the Facts: Secondary Laws for Energy Reform Presented to Mexico's Senate
Mexico’s executive branch submitted implementation laws for the country’s energy reform. AS/COA’s Christian Gómez shares facts on the highly anticipated legislation.
In December 2013, Mexico’s Congress approved an energy reform. The legislation called for the opening of both state oil company Pemex and the Federal Electricity Commission (CFE) to private investment. For the first time in over 75 years, private companies will be able to participate in Mexico’s energy sector.
While the initial legislation described the types of contracts and frameworks called for by the reform, the secondary legislation included the details of how the reform would be implemented. The secondary legislation was presented by the Secretary of Energy Pedro Joaquín Coldwell and Finance Secretary Luis Videgaray at the end of the congressional session on April 30. Congress is likely to call for extraordinary sessions to pass the legislation before September, when the next congressional session begins.
Highlights of the package:
- There are 21 laws in the package, including modifications to 13 existing laws and the establishment of 8 new laws.
- The legislation maintains that hydrocarbons are property of the Mexican state in the subsoil.
- There will be free and open competition and tenders among state enterprises and private companies in exploration and production, transformation, logistics, and electricity. The one
Pemex CEO Emilio Lozoya will join the panel on energy reform at our Mexico City conference on May 12. Check the agenda and tune into the webcast live that day. exception is the sale of gasoline.
- Local content rules mandate that 25 percent of content must be domestically sourced in new projects. This requirement would come gradually into effect by 2025. Pemex must also have an at least 20 percent stake in cross-border projects.
- There will be a petroleum fund set up from oil proceeds that must reach 3 percent of GDP before the government may make withdrawals.
- All contracts with private companies will be adjudicated through public tender. All bidding rounds will be made public and broadcast through the internet. Moreover, the laws focus on strengthening the transparency of public institutions, oversight, environmental protections, and the promotion of clean energy.
- The laws call for the Secretariat of Finance to no longer administer the budget and finances for Pemex and CFE. Furthermore, the Pemex union will no longer make management decisions nor will it participate in Pemex’s administration.
- Pemex will reduce its fiscal burden. It will now pay a tax of 65 percent as opposed to previously paying upwards of 80 percent. The tax will be paid over its profits as opposed to a set percentage of its assets. Pemex must decide its annual budget with a debt limit.
AS/COA’s Energy Action Group is monitoring developments closely and will provide additional information as it becomes available.
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Americas Quarterly blog posts
- Mexico and the United States: Crude Oil Swap? by Christian Gómez, Jr. (April 28, 2015)
- The Price of Oil’s Impact in Latin America and the Caribbean. by Christian Gómez, Jr. (March 9, 2015)
- Addressing Caribbean Energy Security. by Christian Gómez, Jr. (January 27, 2015)
- Shale Gas Development in Latin America. by Christian Gómez, Jr. (September 22, 2014).
- Mexico’s Energy Reform: Lessons from Colombia and Brazil. by Christian Gómez, Jr. and Sophia Sciabica (August 4, 2014).
- HidroAysèn and Chile’s Energy Agenda. by Christian Gómez, Jr. (June 13, 2014)
Presentations
- Energy Situation of the Caribbean: New Opportunities and Green Energy Deployment, by Christian Gómez, Jr. (May 2015)
- China's Interest in Brazil's Oil, by Christian Gómez, Jr. (May 2014)
Meetings and Events
- Washington (March 27, 2017) Extractive Industries in the Americas – Opportunities and Risks. Watch a video of this event.
- New York (December 7, 2016) The Western Hemisphere's Energy Landscape in 2017 and Beyond. Watch a video of this event.
- Miami (October 19–20, 2015) Energy Conference – After the Fall: Energy Security, Sustainable Development and the Environment. Learn more about this event.
- Washington (October 15, 2015) Private Roundtable: A Conversation with Dr. Víctor Urrutia Guardia, Panama’s Secretary of Energy. Learn more about this event here.
- Houston (September 24, 2015) North America in Global Energy Markets: Infrastructure and Integration. Learn more about this event.
- Houston (September 23, 2015) Private Breakfast on Mexico’s Round One Bidding with Lourdes Melgar, Undersecretary of Hydrocarbons of Mexico. Click to see the presentation.
- Miami (July 28, 2015) Private Breakfast with Phillip Paulwell, Minister of Science, Technology, Energy and Mining of Jamaica. Learn more about this event.
- Miami (July 15, 2015) Energy Conference – Natural Gas in Central America and the Caribbean. Watch a video of this event, and read a program summary.
- Washington (May 19, 2015) Private Roundtable: A Conversation with Ali Moshiri, Chevron President for Africa and Latin America.
- New York (May 4, 2015) Mexico: Private Equity Energy Investment. Watch a video of the event.
- Washington (April 27, 2015) Private Roundtable on Renewable Energy and Human Capital in Mexico with Leonardo Beltrán, Deputy Secretary for Energy Planning and Transition, Mexican Secretariat of Energy.
- Washington (March 31, 2015) Venezuela: Political, Economic, and Energy Update. Watch a video of the event.
- Washington (March 18, 2015) Paper Launch: Energy and the Pacific Alliance. Watch a video of the event, or read a program summary.
- Washington (February 19, 2015) The Price of Oil’s Impact on Latin America and the Caribbean. Watch a video of this event, and read a program summary.
- Washington (January 26, 2015) Caribbean Energy Security Summit, an initiative of the Office of the Vice-President. Read a program summary, and read the Caribbean Energy Security Summit Joint Statement here.
- Washington (December 17, 2014) Long Term Oil Dynamics: The Price of Crude Oil, with Ramón Espinasa, Senior Oil and Gas Specialist, Inter-American Development Bank. Learn more about this event.
- Bogota (December 9, 2014) Energy and the Pacific Alliance Roundtable.
- New York (December 1, 2014) Energy Reform in Mexico: Challenges and Opportunities for Mexico’s New Energy Landscape. Watch a video of this event.
- Washington (November 13, 2014) Dinner Discussion with Dr. Lourdes Melgar, Undersecretary for Hydrocarbons, Mexican Secretariat of Energy.
- Santiago (October 20, 2014) Consulta Previa and Renewable Energy Production: Ensuring Community Participation and a Clear Framework for Investment.
- Washington (September 30, 2014) Private Luncheon on Venezuela’s Energy Sector with Dr. Thomas O’Donnell, professor, Freie Universität.
- Washington (September 10, 2014) Representative Michael McCaul on North America Energy Integration and Mexican Energy Reform. Learn more about this event.
- Washington (July 30, 2014) North American Energy Integration: Mexico and Canada. Learn more about the event.
- Washington (May 19, 2014) Asian Energy Investment in the Americas. Watch a video of the event, and read the program summary.
- Mexico City (March 11, 2014) Mexico: Opportunities for Natural Gas and Renewables.
- Calgary (December 3, 2013) North American Energy Integration: The Canadian Perspective.
- Washington (October 22, 2013) Shale Gas Development in Latin America. See a video of the event here and read a program summary here.
- Washington (September 5, 2013) Brazil’s Energy Agenda – Launch of Energy Action Group Working Paper. See a video of the event here and read a program summary here.
- Washington (July 30, 2013) Financing Renewable Energy in Latin America. Read a program summary here.