Page 4 - LatAmOil Week 07 2022

COMMENTAR
LatAmOil COMMENTARY Y LatAmOil

(Photo: LopezObrador.org.mx)
AMLO’s ambitions for energy

security heading for a brick wall

The president’s desire to make Mexico self-sufficient by letting state-run companies
dominate the oil, gas and power sector may actually increase dependence on imports

MEXICAN President Andres Manuel Lopez ought to curb Lopez Obrador’s ability to real-
Obrador is a long-time critic of the energy ise his ambitions – especially since they took
WHAT: reforms introduced by his predecessor Enrique the form of an amendment to the Mexican
Pemex’s export freeze Peña Nieto in 2013-2014, and he has frequently constitution and cannot be repealed without a
and CFE’s proposed min- called for reversing those reforms and/or rolling super-majority two-thirds vote in the legislature.
imum market share may back their efforts to allow competition in the oil But in practice the president has been able to use
force Mexico to import and gas industry. executive decrees and other administrative tools
more fuel. Just as frequently, he has cited energy secu- to make extra privileges available to Pemex and
rity and self-reliance as justifications for his CFE.
WHY: argument that state-owned companies ought to He has also used the power of persuasion,
The president has been play the leading role in the sector. That is, he has urging various government agencies and state-
arguing that state leader-
ship will reduce reliance insisted that Mexico has a much better chance of run entities to seek out every available means
on foreign suppliers. ensuring its ability to meet its own energy needs within the bounds of law to ensure that Pemex
without resorting to imports if it let govern- and CFE have a smoother path than their pri-
WHAT NEXT: ment-run entities such as Pemex, the national vate-sector counterparts.
AMLO is likely to continue oil company (NOC), and the Federal Electricity
discussing the state’s Commission (CFE), the national power pro- More oil imports needed?
role in energy as long as vider, lead the way. This strategy recently received a sympathetic
he remains in office. In theory, the energy reforms of 2013-2014 hearing at Pemex.

P4 www. NEWSBASE .com Week 07 17•February•2022