Energy cooperation will depend on AMLO’s reforms: EU

Currently there are opportunities for cooperation in energy matters between Mexico and the United States, although “the future of these efforts may depend on the result of the reforms proposed” by President Andrés Manuel López Obrador in the sector, warns a report from the Energy Service. US congressional investigation.

“The Biden Administration has engaged Mexico in several high-level meetings to express concern about the proposal, citing concerns that it could hamper US-Mexico cooperation on clean energy initiatives and violate the T-MEC,” the document states. entitled “Mexico: background and relations with the United States”.

It is worth mentioning that the reform that foresees granting up to 54% of the generation of electrical energy to the Federal Electricity Commission (CFE) is currently pending analysis in the Mexican Congress, while the other 46 percent would be granted to the private sector. . The reforms promoted by then President Enrique Peña Nieto —he contextualizes the analysis—, in 2013, created opportunities for American companies.

It adds that as a result of the reforms “Mexico received more than 160,000 million (dollars) in promised investments. However, the reforms ended subsidies that kept gasoline prices low for Mexican consumers and failed to reverse production declines and problems within Pemex.

And he points out that “López Obrador’s energy policies have worried energy investors and US companies with a large part of their supply chains in Mexico. The government’s decisions to stop new auctions in the oil and gas sector, as well as in wind and solar energy projects, surprised investors and put hundreds of existing projects in limbo.

The report concludes that oversight by the (US) Congress may involve broader issues related to the fairness of the policies adopted by the López Obrador government towards foreign energy companies and investors.

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