Mexico compromises energy reforms
Investor uncertainty mounts as approved legislation threatens to return energy sector to state control
Mexico’s senate has approved a provocative new hydrocarbons bill aimed at tackling fuel theft and corruption. But critics argue the proposal undermines the 2013 energy reforms and will restore state oil company Pemex’s downstream domination. Approved by 65 votes to 47, the bill grants the energy ministry (Sener) and the state regulator (CRE) enhanced authority to suspend—either temporarily or permanently—operating permits for reasons of national security, energy security or threats to the economy. “Investors are seriously considering no longer investing in the hydrocarbons sector in Mexico” Rodriguez-Cortina, King & Spalding The new bill gives Mexican authorities unfettered a
Also in this section
19 April 2024
Cairo’s currency problems have hindered investment, but Pharos sees considerable potential as Egypt emerges from crisis
18 April 2024
The Norwegian energy company is concentrating its efforts on specific regions and assets that meet strict cost and carbon criteria
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy