A New Era for Energy in Mexico? The 2013-14 Energy Reform

Abstract

The 2013-14 Energy Reform is arguably Mexico’s most significant structural change in the last fifty years. As the fiscal backbone of the Mexican state, the energy sector is critically important to Mexico’s future. But the outcome of the Energy Reform also has powerful implications for North America and global energy markets.

This article analyzes key legal issues in Mexico’s current Energy Reform, with a particular emphasis on newly established contracting frameworks for private investment. In doing so, this article considers Mexico’s approach within the greater context of natural resource development priorities around the world, which often involve important tradeoffs between sovereignty and government revenues.

This article ultimately concludes that the Energy Reform is a vital and enabling — but incomplete — step towards more rational approaches to energy law in Mexico. In other words, the Energy Reform was necessary but not sufficient for a better energy future in Mexico. Crucial work remains to take the reforms from potential improvements to real benefits.

Keywords: Mexico, Oil & Gas, Energy Reform, Energy, Latin America, Pemex, Petroleos Mexicanos, Foreign Investment