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    Mexico Energy Reform at Full Steam: Reform of Reform The

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    Alonso Hidalgo Amat
    Mexico passed an energy reform allowing private investment in oil and gas exploration and production, changing articles 25, 26, and 27 of the constitution which had granted the government an monopoly. The reform gives state oil company Pemex and federal electricity commission CFE more autonomy to independently operate and contract. It also creates an oil fund managed by the central bank and regulatory agencies for gas and industrial safety. The reform was opposed by left parties but approved by the ruling PRI and opposition PAN parties. The future impact on Mexico's declining oil reserves and Pemex's limited exploration resources remains uncertain as the final implementation details are still being determined.

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    Mexico Energy Reform at Full Steam: Reform of Reform The

    Uploaded by

    Alonso Hidalgo Amat
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    Mexico passed an energy reform allowing private investment in oil and gas exploration and production, changing articles 25, 26, and 27 of the constitution which had granted the government an monopoly. The reform gives state oil company Pemex and federal electricity commission CFE more autonomy to independently operate and contract. It also creates an oil fund managed by the central bank and regulatory agencies for gas and industrial safety. The reform was opposed by left parties but approved by the ruling PRI and opposition PAN parties. The future impact on Mexico's declining oil reserves and Pemex's limited exploration resources remains uncertain as the final implementation details are still being determined.

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    Mexico passed an energy reform allowing private investment in oil and gas exploration and production, changing articles 25, 26, and 27 of the constitution which had granted the government an monopoly. The reform gives state oil company Pemex and federal electricity commission CFE more autonomy to independently operate and contract. It also creates an oil fund managed by the central bank and regulatory agencies for gas and industrial safety. The reform was opposed by left parties but approved by the ruling PRI and opposition PAN parties. The future impact on Mexico's declining oil reserves and Pemex's limited exploration resources remains uncertain as the final implementation details are still being determined.

    Copyright:

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    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    10 views2 pages

    Mexico Energy Reform at Full Steam: Reform of Reform The

    Uploaded by

    Alonso Hidalgo Amat
    Mexico passed an energy reform allowing private investment in oil and gas exploration and production, changing articles 25, 26, and 27 of the constitution which had granted the government an monopoly. The reform gives state oil company Pemex and federal electricity commission CFE more autonomy to independently operate and contract. It also creates an oil fund managed by the central bank and regulatory agencies for gas and industrial safety. The reform was opposed by left parties but approved by the ruling PRI and opposition PAN parties. The future impact on Mexico's declining oil reserves and Pemex's limited exploration resources remains uncertain as the final implementation details are still being determined.

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    Mexico Energy Reform at Full Steam Two years ago, the right leaning Patido de Accion Nacional )PAN)

    failed to push through an energy reform that would open the doors of the Mexican oil sector to the international and national private sector. Last week, the Partido Revolucionario Institucional (PRI) nominally the heir to President Lzaro Crdenas who nationalized the oil industry in 1938- managed to do so, including exploration, extraction, and commercialization, and also including the electricity and gas sectors. Last August, President Enrique Pea Nieto had introduced the first initiative of the Energy Reform to Mexicos senate, a . This document was a draft consisting on the governments party (PRI) reform proposal of reform. The initiative included changing the articles 27 and 28 of the constitution which granted the government exclusivity to generate, conduct, transform, distribute and replenish energy; both electrical and gas. This initial proposal reform did not nt contemplate reforms to the organizational structures of Pemex or the Federal Electricity Commission (CFE). The other two significant political forces (right wing and former government party PAN, and left wing party PRD) had opposite proposals. : while PANs reform proposal also included changing articles 25, 27 and 28 of the constitution, -therefore giving Pemex and CFE administrative and financial autonomy and independent expendingspending. - PRD proposed maintaining the state monopoly but changing to change 12 secondary laws and creating a new bill of Oil Surplus, decentralizing Pemex and turning CFE into a public company. Finally, Between last in only two days Thursday and Friday both the Senate and the Chamber of Deputies Chamber passed the Energy Reform amongst strong opposition from left parties PRD and MC. In the Senate PAN, PRI and Partido Verde debunked step by step all of PRD proposals in a debate that lasted more than 20 hours. The next Friday XX13, the last operational day of the Mexican legislature-day the Chamber of Deputies quickly approved the reform in a fast-track process, despite while PRD representatives congressmen attempt to prevent the debate by physically sealing sealed the doors of the Cchamber hoping to prevent the debate from starting (being Friday the last operational day of the Mexican legislature). The reform contains summarizes in five key elementspoints1: a) Changes to articles 25, 26 and 27 of the constitution, . These will change in order to allow private investments along the in the hydrocarbon value chain. b) Changes in the nature of SOEs. Both Pemex and CFE will gain autonomy, being able to run operations or make contracts (production sharing contracts and utility sharing contracts in the case of Pemex) independently from the central government. c) Creation of an oil trust. This trust will be handled by Mexicos Central Bank in order to regulate revenues from oil exploitation, guaranteeing a minimum contribution to 4.7% of the GDP.
    1

    Formatted: Font: Bold Formatted: Space After: 0 pt Formatted: Font: Bold, English (U.S.) Formatted: Font: Bold Formatted: Font: Bold, English (U.S.) Formatted: Font: Bold Formatted: Font: Bold, English (U.S.) Formatted: Font: Bold

    Comment [c1]: Spending?

    Taken from: Qu cambios plantea la reforma energtica?: http://bit.ly/18C4Cyq El Universal dec. 112013

    d) Oil Wworkers Union representatives removed from Pemex administrative board. While workers rights will remain untouched, the union will be losing its 5 seat board representation at Pemex administrative board. e) New regulation agencies. Establishment of a The bill will create the National Center of Natural Gas and the National Agency of Industrial Security and Environmental Protection of the hydrocarbon sector. Also will push Also will enforce the Energy Regulatory Commission and the National Hydrocarbon Commission. While there have been public demonstrations against the reform led by political group MORENA (Movimiento Regeneracin Nacional) and PRD, the general feeling among Mexican people is of uncertainty, mainly because there isnt a clear explanation of how the bill will affect them. In the meantime, Mexicos legislature will remain closed until next year and the bill is being discussed for approvar or rejection in each of the has to pass in the different states assemblies, but given that PRI and PAN rule most of them, surprises are not expected. . Is yet to be seen how these changes will apply. In theory the Government still has 120 days to release the bill in its final form. Conclusion? In the meantime, Mexicos oil reserves keep falling and a lack of resources for exploration in the fiscal regime is foreseeable.

    Comment [c2]: No entiendo esto

    Comment [c3]: Aqu podra ser un comentario sobre la cada de las reservas de Pemex y su falta de recursos para exploracin por su rgimen fiscal. Y hacer el vnculo con la reforma fiscal que est en discusin.

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