Energy reform proposals emerging in Mexico

Mexico’s ruling political party is expected this week to propose market-oriented energy reforms after the opposition National Action Party (PAN) on July 31 advanced a program that would open oil and gas exploration and production to private participation (OGJ Online, July 24, 2013).

According to a legal update by the law firm Mayer Brown, the PAN proposal would:

• Open oil and gas exploration and production to private investment and competition.

• Establish the National Hydrocarbon Commission as grantor of oil and gas upstream concessions.

• Open the oil and gas downstream and midstream businesses to private investment and competition.

• Open the electricity industry to more private investment and competition than exists at present.

• Create the Mexico Oil Fund to administer oil profits and seek to decrease the government’s dependence on oil revenue.

• Provide Petroleos Mexicanos, the state oil monopoly, and Federal Electricity Commission (CFE), the electricity company, greater autonomy to change corporate governance.

• Focus on sustainability and climate change.

The proposal calls for amending three articles of the Mexican Constitution, one of which, Article 27, has combined with Mexico’s Regulatory Law to restrict private participation in oil and gas activities for more than 60 years.

Mayer Brown said the PAN and ruling Institutional Revolutionary Party (PRI) together “are expected to have the required consensus to amend the Constitution.”

It said the parties both “favor market-friendly energy policies, making major changes in the Mexican petroleum regime a real possibility.”

Related Articles

Shell submits revisions to its 2015 Chukchi Sea exploration plan

08/29/2014 Shell Offshore Inc. submitted revisions to its previously approved Chukchi Sea exploration plan on Aug. 28, a spokesman for the company confirmed. ...

BLM announces California oil, gas strategy as CCST issues report

08/29/2014 The US Bureau of Land Management’s California state office announced a comprehensive strategy for its oil and gas program in the state after receiv...

MARKET WATCH: Crude oil futures end trading session higher in New York


Crude oil futures prices trended upwards Aug. 28, ending the day’s trading session higher, while the ICE contract for Brent retreated.

EIA: US sees lowest pre-Labor Day gasoline prices in 4 years

08/29/2014 US retail prices for regular gasoline averaged $3.45/gal on Aug. 25, which was lowest price on a Monday preceding the Labor Day holiday in the US s...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected