Journal of International Business and Economics

Mexico’s Energy Policy and Environmental Care: From the Constitutional Energy Reform to a New Initiative
Roberto Gutierrez-R

Summary
After more than 70 years of operation of a state-owned petroleum monopoly and 50 years of a state-owned electricity duopoly which evolved into a monopoly, the implementation of the 2013-2014 constitutional energy reform in Mexico involved significant changes: It allowed for private investment all along the value chain of hydrocarbon and power industries and rejected any kind of monopoly power even from the two hydrocarbons and energy power state-owned companies, Pemex and CFE. By the end of 2018, only a tiny fraction of all expected private foreign and domestic investment and the underlying technological capabilities were put in place, originating plenty of regrets from the government which took office on December the 1st, moving the emphasis toward nationalism, energy self-reliance and lesser environmental commitments. To what extent this policy will allow the country to regain its oil production capabilities and what the international consequences of reinforcing the monopoly power of the state-owned energy enterprises will be remains unknown, as it is unknown whether the strategy looks for a reversal to the energy reform commitments.

Full Text: PDF     DOI: 10.15640/jibe.v6n2a9