Page 4 - LatAmOil Week 20 2021

LatAmOil COMMENTARY LatAmOil

(Photo: NREL)
Mexico’s energy priorities

vs. the IEA’s climate concerns

Fossil fuels are likely to retain at the top of Mexico’s energy balance for the time being

GIVEN that a consensus has emerged about the reserves. But they also contribute to carbon
necessity of curbing carbon emissions in order emissions in ways that are not congruent with
WHAT: to mitigate climate change, it is hardly surpris- the IEA’s vision.
Mexico still sees renew- ing that the International Energy Agency (IEA)
able energy as a lower is calling for drastic measures to curb fossil fuel Promoting Pemex’s interests
priority than fossil fuels. use, including putting a complete stop to oil and Squaring this circle may prove particularly dif-
gas exploration. ficult in Mexico.
WHY: Even so, it is not easy to figure out how to put The country is not just one of the biggest oil
Oil and gas still have these recommendations into practice in Latin producers in the region; it is also led by President
significant technological America. Millions of people in the region still Andres Manuel Lopez Obrador, who has been a
and logistical advantages do not have access to adequate and reliable sup- champion of Pemex, the national oil company
over renewables. plies of fuel and power, and renewable energy (NOC). The current administration is deter-
projects cannot cover these gaps quickly because mined to ensure that Pemex remains a key driver
WHAT NEXT: of the innate limitations of current technologies. of the Mexican economy, and to this end it has
Both IEnova and state Oil and gas projects, by contrast, face been pushing the NOC to process more crude
officials in north-eastern fewer technological constraints – and they oil into fuel for domestic consumption – even
Mexico are keen on gas.
have logistical advantages, since the region is when energy demand turned sluggish because
already known to possess sizeable hydrocarbon of the coronavirus (COVID-19) pandemic.

P4 www. NEWSBASE .com Week 20 20•May•2021