• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 17 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 3 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 9 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 5 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 6 days Demonising fossil fuels has caused major grid problem in Australia
  • 6 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 7 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"

Breaking News:

Oil Likely To Hit $200: SEB Group

Mexico Court Rules In Favor of Government's Energy Reform

A Mexican court overturned a bid seeking to cancel the energy industry reform pushed by the Mexican government under the leadership of President Andres Manuel Lopez Obrador.

According to a report by the Financial Times, the majority of a panel of judges voted against some of the central stipulations of the proposed new energy law—but the majority did not reach the eight votes required to invalidate the bill.

The purpose of the proposed energy sector reforms is to reinstate government-controlled entities as virtual monopolies in the Mexican energy market. This is part of efforts to strengthen the state's control over all industries.

However, the energy sector reform could shelve $22 billion worth of wind and solar projects. These projects are all operated by big foreign companies, including Spain's Iberdrola and U.S. Sempra Energy, potentially putting Mexico at odds with foreign governments, most notably its northern neighbor.

The energy bill could lead to the cancellation of some of these renewable energy projects as it prioritizes the development of hydropower, nuclear power, and natural gas power generation: capacity run by state-owned Comision Federal de Electricidad. The government wants to boost its market share to above 54 percent from a current share of 38 percent.

The private sector has already accused the government of putting billions of dollars in investments in jeopardy with its reform push, noting that it also constitutes a violation of trade treaties and would lead to more polluting and more expensive electricity.

"On top of the policy and political uncertainty that is affecting business confidence, this decision adds a component of legal uncertainty that companies will have to deal with," Carlos Peterson, senior analyst at Eurasia Group, told the FT. "That will likely discourage investment." 

The U.S. has been vocal in its opposition to the planned reforms, with climate envoy John Kerry visiting Mexico three times over the last five months to make this opposition known to those working on the reform. The U.S. trade representative Katherine Tai has warned that as much as $10 billion in U.S. investment was under threat from the reform.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News