Page 4 - LatAmOil Week 03 2022

COMMENTAR
LatAmOil COMMENTARY Y LatAmOil

Granholm addresses the American Chamber of Commerce in Mexico City (Photo: Twitter/@SecGranholm)
Biden team takes new tack

on Mexican energy policy

US Energy Secretary Granholm speaks up in favour of companies seeking to enter

Mexican energy sector – but on behalf of investors in renewables, not for oil and gas

MEXICO’S current government, headed by opponent Joe Biden would not make relations
President Andres Manuel Lopez Obrador, had with Mexico (to say nothing of Mexican energy
WHAT: good reason to expect that the outcome of the policy specifically) a top priority. This was so
Energy Secretary Jennifer US presidential election in 2020 would work in partly because he knew Biden would be facing
Granholm has criticised a his favour, no matter the results. urgent domestic issues related to the coronavi-
proposed amendment to On the one hand, Lopez Obrador got along rus (COVID-19) pandemic and partly because
Mexico’s constitution. quite well with then-incumbent Donald Trump. he could expect Biden to strike a different note
Despite Trump’s provocative remarks about ille- on immigration issues. Additionally, he also
WHY: gal immigration into the US from Latin America had reason to believe that the Republican legis-
Mexico’s president wants across the Mexican border, the two leaders were lators who groused about obstacles to US invest-
state-owned companies both of a populist bent and dealt well with each ment in the Mexican oil and gas sector would
to lead the energy sector. other. not receive much sympathy under the Biden
Their relationship was close enough that the administration.
WHAT NEXT: Trump administration did not react much to
Washington is not likely Republican legislators’ complaints that Mexico’s No initial surprises
to throw much weight government was taking a policy approach that As it happens, Biden defeated Trump in 2020
behind oil and gas com-
panies affected by Lopez damaged the interests of US companies working and has now been in office for a year.
Obrador’s preference for in the Mexican energy sector. And for most of that year, there have not been
Pemex. On the other hand, Lopez Obrador could any major surprises in US-Mexico relations with
remain confident that Trump’s Democrat respect to energy.

P4 www. NEWSBASE .com Week 03 20•January•2022