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
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields