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Turn Up the Gas on Mexico’s Energy Revolution - Mexico Institute In the News

Duncan Wood

Duncan Wood authored a piece on Mexico’s proposed energy reforms for Bloomberg View

Aug. 14 2013Bloomberg View 

Mexican President Enrique Pena Nieto announced his government’s proposal for far-reaching energy reform two days ago, a plan that includes the shake-up of national oil company Petroleos Mexicanos and the opening of oil exploration and production to private and foreign companies after 75 years of running a state-run monopoly. That has opened an intense debate over who should have the right to exploit the nation’s oil reserves, commonly referred to as the tesoro nacional (national treasure) or oro negro (black gold).

But behind the public’s focus on oil looms another vitally important and less discussed question: what to do about Mexico’s huge natural-gas reserves. These are found in associated gas fields (alongside oil reserves) and nonassociated deposits, and, most important, in Mexico’s significant shale resources. The U.S. Energy Information Administration estimates that Mexico has the world’s sixth-largest shale-gas reserves, with 555 trillion cubic feet of recoverable reserves (plus a further 13 billion barrels of recoverable shale-oil reserves). Yet only minimal investment in shale gas has taken place in Mexico, while Pemex focuses on holding up its rapidly declining oil production from the Gulf of Mexico.

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About the Author

Duncan Wood

Duncan Wood

Vice President for Strategy & New Initiatives; Senior Advisor to the Mexico Institute
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Mexico Institute

The Mexico Institute seeks to improve understanding, communication, and cooperation between Mexico and the United States by promoting original research, encouraging public discussion, and proposing policy options for enhancing the bilateral relationship. A binational Advisory Board, chaired by Luis Téllez and Earl Anthony Wayne, oversees the work of the Mexico Institute.   Read more