5 Economic Points on Mexico Energy De-Regulation

On the eve of the 1st round of bidding in Mexico’s de-regulated energy market, let’s look at 5 economic and political impacts of this move:

1. ” Biggest economic moment for Mexico since the 1993 signing of NAFTA”
2. “an integrated continental energy market capable of “unleashing mutual economic, employment, and geopolitical benefits—a NAFTA-type collaboration,” as Manhattan Institute adjunct fellow Mark Mills put it in a 2012 report.”
3. “Biggest risks lay with Mexico’s weak rule of law and uncertain property-rights.”
4. ” Energy Intelligence Group website this month, Jason Fargo reported that the oil majors are expected to be most interested in the deep-water blocks “due to their high potential for significant discoveries.” With access to “existing infrastructure” and closer to home and in “a far more stable, pleasant place to do business” than the Mideast, Mexico is attractive to these companies.”
5. It is “an opportunity for the young, pragmatic president [President Enrique Peña Nieto] eager to make a name for himself.”

WallStreet Journal