Page 6 - NorthAmOil Week 03 2022
P. 6

NorthAmOil                                    COMMENTARY                                          NorthAmOil




       Biden administration taking new





       approach to Mexican energy policy







       Washington speaks up in favour of US energy companies seeking to enter Mexico – but for

       renewables, not for oil and gas



        US-MEXICO        MEXICO’S current government, headed by  had reason to believe that the Republican legis-
                         President Andres Manuel Lopez Obrador, had  lators who groused about obstacles to US invest-
       WHAT:             good reason to expect that the outcome of the  ment in the Mexican oil and gas sector would
       Energy Secretary Jennifer   US presidential election in 2020 would work in  not receive much sympathy under the Biden
       Granholm has criticised a   his favour, no matter the results.  administration.
       proposed amendment to   On the one hand, Lopez Obrador got along
       Mexico’s constitution.  quite well with then-incumbent Donald Trump.  No initial surprises
                         Despite Trump’s provocative remarks about ille-  As it happens, Biden defeated Trump in 2020
       WHY:              gal immigration into the US from Latin America  and has now been in office for a year.
       Mexico’s president wants   across the Mexican border, the two leaders were   And for most of that year, there have not
       state-owned companies   both of a populist bent and dealt well with each  been any major surprises in US-Mexico rela-
       to lead the energy sector.  other. Their relationship was close enough that  tions with respect to energy. The closest thing
                         the Trump administration did not react much to  to an upset was the decision in late November
       WHAT NEXT:        Republican legislators’ complaints that Mexico’s  by the Committee on Foreign Investment in the
       Washington is not likely   government was taking a policy approach that  United States (CFIUS) to delay the transfer of a
       to throw much weight   damaged the interests of US companies working  50.01% stake in the Deer Park refinery in Texas
       behind oil and gas   in the Mexican energy sector.     from Shell (UK) to Mexico’s national oil com-
       companies affected   On the other hand, Lopez Obrador could  pany (NOC) Pemex for several weeks. (In the
       by Lopez Obrador’s   remain confident that Trump’s Democrat  end, though, the delay was only temporary, and
       preference for Pemex.  opponent Joe Biden would not make relations  the sale has now been finalised.)
                         with Mexico (to say nothing of Mexican energy   This  week,  though,  Biden’s  Secretary  of
                         policy specifically) a top priority. This was so  Energy Jennifer Granholm publicly criticised
                         partly because he knew Biden would be facing  the Mexican government’s energy policy. Dur-
                         urgent domestic issues related to the coronavi-  ing a meeting with Lopez Obrador in Mexico
                         rus (COVID-19) pandemic and partly because  City, she expressed concern about the presiden-
                         he could expect Biden to strike a different note  tial administration’s bid to change the constitu-
                         on immigration issues. Additionally, he also  tion to guarantee that a state-owned company,






















                                                                                                  US President Joe Biden
                                                                                                  and Mexican President
                                                                                                  Andres Manuel Lopez
                                                                                                  Obrador


       P6                                       www. NEWSBASE .com                        Week 03   20•January•2022
   1   2   3   4   5   6   7   8   9   10   11