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.
José Woldenberg, who served as the first president of Mexico's Federal Electoral Institute, traced the country's transition to democracy at an April 2014 lecture hosted by the Baker Institute Mexico Center. The center's Lisa Guaqueta and Kristin Foringer explain why Mexico's experience is distinct from similar processes elsewhere in the world.
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.
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.
On Monday, three committees in Mexico’s senate — constitutional issues, energy and legislative studies — voted to bring an energy reform bill to the chamber’s floor for debate. The legislation would provide international oil companies the opportunity to participate in profit-sharing contracts and concession-like licenses for energy operations in Mexico, and it is expected to become law by the end of the legislative session Dec. 15.
