MEXICO'S EP REFORM: AN OPPORTUNITY MISSED FOR PETROLEUM CONSERVATION?

Mexico´s constitutional energy reform was published in the Mexican Federal Gazette (Diario Oficial de la Federación) on December 20th, 2014 (the "Energy Reform"). It provides new legal frameworks and market structures for the petroleum and electricity sector, including 9 (nine) new laws and amendments to 12 (twelve) existing laws. The Energy Reform is designed to provide a valuable opportunity to revitalize Mexico's energy sector and boost its economy. Immediate drivers for its implementation have been (i) the impressive fall in crude oil production (in decline since 2004 and high volume of `cost oil´) and exports regarding the recent expansion of oil and gas in the North American region, (ii) a dramatic natural gas supply crisis caused by the increase of imports that has been insufficient to meet demand due to midstream constraints, and (iii) uncompetitive electricity costs and prices that limit manufacturing growth.

1. Introduction

2. Defining Petroleum Conservation

3. Why petroleum conservation is important for Mexico

4. Petroleum Conservation measures taken by Mexico

5. Developing Transboundary Hydrocarbon Resources with the US

6. Conclusions