The slow implementation of energy reform decrees

Abstract

The seven decrees which constitute Mexico’s energy reform were signed in November 2008. They proposed five essential objectives: increasing production of hydrocarbons in Chicontepec; the exploration of hydrocarbons in the deepwater Gulf of Mexico; the built up of a new refinery; to resolve the problem of imbalance in the extraction of oil from Mexico and the United States on the boundary of the marine waters of the Gulf of Mexico, and have incentive contracts to facilitate the participation of private enterprises in the exploration and exploitation of hydrocarbons. They also raised two procedural objectives: to strengthen the regulatory capacity of the Ministry of Energy and some decentralized agencies, including the creation of others, and give Pemex management autonomy. Until April 2011, only the procedural part is fulfilled, which involves high energy costs, without a clear outlook for oil industry.