PRD Energy Reform Proposal

The PRD released an eight-page summary of its Energy Reform proposal. MEI’s preliminary observations include the following:

1) One has the impression that this document was inspired by Pemex traditionalists, as Pemex is seen in the first place as a fuel supply agency, and, secondarily as an instrument for social development and cohesion.

2) The Energy Reform of 2008 strengthened SENER as an agency for energy policy, but the PRD proposal wants Pemex to be in charge of “strategic direction.”

3)  There is no mention of market forces. The ideas that a) prices will be set as to promote energy efficiency and b) subsidies would be given only to those who need them are rhetorical gestures that reveal the ideal of a paternalistic State.

4) No new areas for private investment are proposed (although the future amendments to the Petroleum Law could create new areas). As it stands, there is nothing in this document that would motivate private investment.

5) The CNH is to be strengthened, and given a broader mandate; but the policy direction and logic for such changes are not specified.

Download the PRD Energy Reform Proposal (Spanish), which include  MEI commentary highlights and index (English).

Written by

Mexico Energy Intelligence

Baker & Associates offers niche-market business and policy intelligence related to Mexico's oil and gas, power and chemical industries. Over 1,000 reports have been issued in the last 20 years. Subject matter expert and publisher George Baker, who directs the firm, has carried out consulting assignments starting in the late 1970s at the height of the Oil Boom in Mexico. He brings bilingual and bicultural skill-sets to understanding and responding to challenges of business and public policy, coupled with a deep familiarity with the history and idiosyncrasies of the Mexican operating environment.