Why is Mexico a major oil producer & exporter?

Mexico’s energy and economic profile presents both challenges and opportunities as a major oil producer, exporter and through its growing domestic energy demand.

What is Mexico's energy goal?

According to Mexico’s Energy Transition Law (Ley de Transición Energética) and General Climate Change Law (Ley General de Cambio Climático), Mexico’s goal is 35 percent of electricity from clean energy sources by 2024, which includes power regeneration from renewable and non-renewable sources such as nuclear and efficient cogeneration.

Can Mexico's electricity sector meet demand from nearshoring?

Mexico’s electricity sector needs to shape up to meet increased demand from nearshoring. Mexico’s electricity sector offers a promising path for the United States to align its nearshoring objectives with Sheinbaum’s agenda. But to do so, it must benefit state-owned companies and free up state funds for social programs aimed at reducing inequality.

What is Mexico's energy policy?

Since December 2018, however, Mexico has pursued an energy policy centered on reinstating the primacy of its state-owned electrical utility, CFE, and oil and gas company, PEMEX. Mexico has undertaken various measures to achieve this aim.

Why is the United States concerned about Mexico's energy policies?

The United States has raised concerns with Mexico regarding its energy policies on numerous occasions, including in connection with the USMCA Free Trade Commission meetings in 2021 and 2022, the Deputies Meeting of the USMCA Free Trade Commission in 2022, and in meetings of the USMCA Committee on State-Owned Enterprises and Designated Monopolies.

Does Mexico have a natural gas policy?

More recently, in June 2022, Mexico’s Secretary of Energy notified the Energy Regulatory Commission (CRE) and the National Natural Gas System Operator (CENAGAS) of a change in policy that would require, among other things, that users of Mexico’s gas transportation network demonstrate that they source natural gas from PEMEX or CFE.