Research Library

Energy regulation under Mexico's energy-sector reforms are of great interest to investors, since autonomous regulators—protected from political pressures and able to make and sustain technical decisions—can guarantee greater legal consistency than government authorities exposed to political pressures. The difficulty was finding an alternative model that ensured the institutional strengthening of the agencies without relinquishing too much control of the executive branch.

Governance of the natural gas sector in Argentina is at an incipient stage. The oil and gas sector developed under a centralized management structure in which a relatively insulated government imposed policy on the sector. That structure is well-developed, even if unstable and characterized by lack of credibility. The traditional unilateral government control of the sector is not appropriate for creating a favorable investment climate for the high-cost, high-risk investments required in shale gas or for managing the protests by civil society actors that have erupted against fracking. But the creation of governance as a replacement for government control is only beginning and faces many obstacles to its full development. The evolution of governance will have a major impact on the development of the country's shale gas resources. Consequently, the full development of Argentina's shale gas potential is problematic.

The recently released National Climate Assessment documents the accelerating rate of climate change caused by human activities, leading to extensive and damaging impacts. The report represents scientific findings on the state of climate change in the United States, summarized in a way that is accessible to its intended audience: the president, members of Congress, and the American people, writes Ron Sass, fellow in global climate change. Will the U.S. Congress respond actively to the report rather than do nothing, as it has in the past? Sass is not sure, but writes that “it is up to the American people to inform themselves and then vote into power those who have the ability and desire to understand the seriousness of the changing climate and are willing to work together to confront it.”

Mexico's organized crime groups have expanded into areas that include the theft of crude oil, gas and gasoline. The impact of organized crime on the energy sector is a real threat to the intended effects of Mexico's energy reforms.

Fossil fuel subsidies have allowed energy exporting countries to distribute resource revenue, bolstering legitimacy for governments, many of which are not democratically elected. But subsidy benefits are dwarfed by the harmful consequences of encouraging uneconomic use of energy. Now, with consumption posing a threat to long-term exports, governments face a heightened need to raise prices that have come to be viewed as entitlements. While reforms of state benefits are notoriously politically dangerous, previous experience shows that subsidies can be rolled back without undermining government legitimacy — even in autocratic settings — given proper preparation.

Kenneth B. Medlock III, James A. Baker, III, and Susan G. Baker Fellow in Energy and Resource Economics, testified about crude oil production and energy trade policy before the Committee on Foreign Affairs of the U.S. House of Representatives.

There is a curious imbalance in energy markets in the Persian Gulf region: Five of the six Gulf monarchies exhibit shortages in domestic supply of natural gas. Meanwhile, Qatar holds the world's third-largest conventional reserves and is the world's No. 2 gas exporter. Why is Qatar, given its enormous resources and relatively small domestic needs, unwilling to supply gas sufficient to meet its neighbors' demand?

Mexico’s 2013–2014 energy reform promises to bring the country’s economic drivers and regulatory institutions in line with the global practices of free market democracies. If successful, this development would be a 180-degree turn. The accomplishment of such realignment is hardly assured, however.

The situation in Ukraine is the most serious foreign policy challenge ever faced by the Obama administration, writes Rice faculty scholar Richard Stoll.

A paper discussing the nature of natural gas pricing in Asia and forecasting changes in the pricing paradigm as well as the global market.