Maximising Mexico’s energy potential requires a new era of energy reform
“The focus of this G20 summit on energy security comes at a crucial time. The past several years have seen a significant shift in the global energy paradigm. The rise of China, India, and other rapidly developing nations, has increased the energy demand projected for the next two decades. Meeting this demand will require not only the ongoing stability of current energy supplies, but also exploiting new energy sources.
Fortunately, the discovery of new shale gas and oil reserves, as well as the development of alternative energy sources and technologies, offers a promising future for energy security. Consequently, countries need to look within their own borders for real, and practical energy solutions as well as strengthen international cooperation and investment.
In Mexico, we are about to embark on a journey that, hopefully, will yield greater energy supplies for both domestic use and export. In order to fully tap our energy potential, we need to be open for international technology and financing. Otherwise, our ability to achieve energy security will be undermined.
To this end, I am pledged to modernise Mexico’s oil company, Petróleos Mexicanos (PEMEX), to find new ways to take advantage of the country’s enormous energy potential. While I do not intend to privatise PEMEX, I do believe that a reform is needed to allow private investment – both national and foreign – in this important segment of the Mexican economy. New partnerships in this arena cannot be understated.
My proposal to reform the energy sector maintains the state’s control of the oil industry and the nation’s hydrocarbon reserves. Nevertheless, it provides the government oil company the powers and legal authority to engage in strategic public-private alliances. If PEMEX wants to help Mexico achieve energy security and position itself as a growing energy exporter, it requires significant investment in new technologies, which can only be attained through increased private sector partnerships.
On top of large deep-water oil reserves and a tremendous potential in renewable energy, Mexico holds one of the largest shale gas reserves in the world. For that reason, new technologies, new partnerships and new investments to help us better exploit these resources, must be welcomed. Indeed, many actors in the private sector have developed a profound know-how in difficult-to-extract energy. Thus, we seek to cultivate close partnerships with such actors, allowing us to achieve our common goals.
By doubling down on development and international cooperation, we can usher in a new era of energy independence and security for Mexico and for the industrialised world. I hope that this summit will yield productive talks toward this goal.”