Mexico’s state oil company, Petroleos Mexicanos (Pemex), established in 1938 as the world’s first major national oil company, remains an important source of government revenue even as it is struggling to counter the country’s declining oil production and reserves. Experts have long urged the Mexican government to reduce the heavy fiscal burden on Pemex and reform the constitution to enable Pemex to partner with international companies that have the experience and capital required for exploring Mexico’s large deep water and shale resources. Numerous stakeholders in Mexico remain concerned, however, that increasing private involvement in Pemex could threaten Mexico’s traditional control over its natural resources.
President Enrique Peña Nieto of the nationalistic Institutional Revolutionary Party (PRI) won the Mexican presidency on December 1, 2012 after 12 years of rule by the conservative National Action Party (PAN). Even though Peña Nieto stood for the PRI, the party that originally nationalized the oil industry, he campaigned on an economic platform that prioritized allowing Pemex to form joint ventures with private companies. President Peña Nieto introduced an energy reform proposal dealing with the hydrocarbons and electricity sectors in August 2013 and is urging the Mexican Congress to enact those reforms during the current legislative session that concludes in mid-December 2013. With support from the PAN and other small parties, the prospects for reforming Pemex appear better now than in the past.
The U.S. Congress has legislative and oversight interests in examining the potential implications of Mexico’s oil and natural gas reforms on U.S. hydrocarbons imports and exports, bilateral trade and investment, and economic conditions in Mexico (a top trade partner). The U.S. House and Senate have passed legislation (H.R. 1613 and S. 812) related to implementing a U.S.-Mexico Transboundary Hydrocarbons agreement that would facilitate joint development of oil and natural gas in part of the Gulf of Mexico. Other legislation has been introduced dealing with U.S. approval processes for North American energy infrastructure, including oil and gas pipelines (H.R. 3301). The North American Free Trade Agreement (NAFTA) excluded private investment in Mexico’s energy sector, but it is possible that these issues could be addressed in the ongoing negotiations for the proposed Trans Pacific Partnership (TPP) agreement. Regardless, an opening of Mexico’s oil and natural gas sector could expand U.S.-Mexico energy trade and provide opportunities for U.S. companies and investors involved in the hydrocarbons sector, as well as infrastructure and other oil field services. If these reforms accelerate growth and investment in Mexico (as the government has promised), they could benefit North American competitiveness.
Download «Mexico's Oil and Gas Sector» PDF
Tag cloud: mexico's, oil, and, gas, sector, cheap download, pdf, 1 usd, pdf, clare ribando seelke
|Title||Mexico's Oil and Gas Sector|
|Author||Clare Ribando Seelke|
|Publisher||Congressional Research Service|
|File size||3.4 Mb|
|eBook format||Kindle Edition, (torrent)|
|Book rating||0 (0 votes)
If you like Mexico's Oil and Gas Sector, read this: