A new meeting of the Mexican-American Energy Business Council took place in Washington D.C, where government representatives of both countries gave an update on NAFTA Agreement negotiations, regarding energy issues.
For industry expert Leticia Armenta, despite political uncertainty and the renegotiation of the NAFTA Agreement, companies that have won tenders in Mexico will be unable to withdraw their investments.
One of the main goals of the Energy Reform is to boost investment in the energy sector. Mexican authorities have managed to attract the investors’ interest and it seems like this objective is on the right track so far. The relationship with the communities plays a key role in this process.
Andres Manuel Lopez Obrador (AMLO) went to the State of Campeche last week. He talked about the oil sector and made promises to recover the industry metrics and the regional economy.
The Mexican government promoted Energy Reform with the goal of recovering the oil sector metrics in Mexico. The National Institute of Statistics and Geography (INEGI) analyzed the behavior of the sector in recent years, with worrying results, despite the implementation of the reform.
Mexico has been discussing fuel prices since early last year when the government decided to let the market set them freely. This generated the well-known ‘Gasolinazo’, affecting Mexicans’ pocketbooks and some presidential candidates have proposed returning to a regulated system. The British Bank Barclays spoke about this possibility and its possible consequences in the country.
Mexico is facing tough times in the oil sector due to Pemex has been unable to overcome its financial and operational crisis. This situation has generated a dependency on imports, but Mexican authorities are optimistic about a possible recovery in a couple of years.
The liberalization of the fuel prices has been a hard and unpopular process with Mexicans. Some presidential candidates have proposed to return to a system of controlled prices. The rating agency Fitch spoke about this alternative and its possible consequences. The Energy Regulatory Commission (CRE) reported average gasoline prices in Mexico during May.