Over the past two years, the government of Mexican President Andrés Manuel López Obrador has sought to strip away central aspects of the 2013 energy reform that increased private investment in the power sector and return control of the sector to state utility CFE. These moves will reduce needed investment in the sector and lead to higher electricity costs for Mexican industry and manufacturing, affecting employment, trade, and Mexico’s ability to meet its clean energy targets, according to this new report by the Inter-American Dialogue.
This policy brief examines the regulatory changes in Mexico’s electric power sector made under the López Obrador administration. The brief analyzes the broader implications for Mexico’s economy and its trade and economic relations with its key trading partner, the United States. A full report will be forthcoming in October 2020.
Lisa Viscidi, director of the Energy, Climate Change & Extractive Industries Program, spoke with Natural Gas Intelligence’s Adam Williams about recent regulatory changes to Mexico’s energy sector and how they are impacting the country’s natural gas market. They discuss obstacles that could affect the country’s energy sovereignty, investment opportunities, natural gas imports from the United States, and concerns surrounding political risk in the sector.
Political changes are shaping the outlook in many of South America’s smaller and emerging oil and gas producers, including Guyana, Suriname, Ecuador, Peru and Bolivia. At a webinar co-hosted by the Inter-American Dialogue and the National Capital Area Chapter of the United States Association for Energy Economics (NCAC-USAEE), panelists discussed how political developments and the oil price decline are likely to impact producers in the region.