Commentary: Mexico’s Reform Program

Posted August 21, 2014 at 5:05am

Enrique Peña Nieto, the President of Mexico, writes in the Financial Times : “Today we are the world’s 10th-largest oil producer and our recoverable shale gas resources rank sixth. The energy reform will allow us to take advantage of our natural resources in a sustainable way, while observing basic principles of sovereignty. This reform will ensure the energy sector again becomes an engine for economic growth, by guaranteeing the supply of oil, gas and electricity at competitive prices.”  

“It creates opportunities for private companies to invest, and improve and expand the sector’s infrastructure. This will increase oil production from the current 2.5m barrels a day to 3m by 2018. Likewise, natural gas production will grow from 5.7bn cubic feet a day to 8bn by 2018. Pemex (Petróleos Mexicanos) will be more competitive and will have the autonomy needed to operate as a modern company, as well as the opportunity to forge alliances and reduce operating costs. The reform will promote investment in renewable energies, an area where Mexico has immense potential. It is expected that with this reform, Mexico’s gross domestic product will increase by 1 per cent by 2018 and 2 per cent by 2025.”  

The piece concludes: “In the coming months we will implement the policies to bring these reforms into action. Our goal is to make Mexico more open, productive and competitive, with sound public finances and skilled human resources; so we can play a more active role in the global economy and provide our people with a better quality of life. Together we are building a new Mexico.”