In a worst-case scenario, the OPEC+ market stabilization agreement has broken down amid the Covid-19 pandemic. The spread of the virus has contributed to the collapse in oil demand, with oil prices slashed by 80%. President Andrés Manuel López Obrador claims Mexico is prepared for the crisis. It has reserves, a revenue stabilization fund and a solid economic base. However, this perception might not be fully aligned with reality and could severely undermine the economic and social stability of Mexico. The government has the opportunity to turn a looming catastrophe into the justification to redefine its energy policy. As a country with vast hydrocarbon resources, Mexico could divert the oncoming crisis by taking radical measures such as redirecting investment, promoting private participation and fostering an energy transition. Energy sovereignty, the keystone of the López Obrador administration, would endure while the development of Mexico’s renewable and conventional resources would progress.
At this webinar, energy fellows Lourdes Melgar and Benigna Cortés Leiss discussed Mexico's energy policy response to Covid-19. This event was sponsored by the Center for Energy Studies. Follow @CES_Baker_Inst on Twitter and join the conversation online with #BakerEnergy.
10:30 a.m. — Presentation
11:00 a.m. — Q&A
Benigna Cortés Leiss
Nonresident Fellow in Latin American Energy; former General Director, Chevron Energía de México
Lourdes Melgar, Ph.D.
Nonresident Fellow, Center for Energy Studies