From The Report: Mexico 2017
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Mexico’s energy sector has been undergoing a profound paradigm shift since a reform programme, launched in 2013, put an end to state monopolies in most subsectors and began the process of opening the production and distribution of oil, gas, petrochemicals and electricity to private investment. In parallel, the entire legal, regulatory and institutional framework is being transformed to oversee new market mechanisms. The fruits of these efforts became more apparent in 2016 when a number of notable developments took place, including two successful long-term electricity supply auctions and a deepwater oil and gas auction for exploration and production in December 2016. A significant challenge going forward will be to ensure that infrastructure is of sufficient quantity and quality for the entire country to benefit from the reform efforts. While the increase in global oil prices and the decline in value of the Mexican peso in the second half of 2016 and into early 2017 will cause further knock-on increases in prices facing consumers of both combustibles and electricity, the same phenomena should give a boost to the energy sector more generally. This chapter includes interviews with José Antonio González Anaya, CEO, Petróleos Mexicanos; Jaime Hernández Martínez, Director-General, Federal Electricity Commission; and Angélica Ruíz Celis, Director-General, Vestas Latin America.