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Home Automotive

US fuel firms ask the Biden administration to review Mexico’s energy policy

by souhaib
January 24, 2022
in Automotive
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To the various petitions made by United States legislators on behalf of companies with interests in the business of electricity in Mexico was added that of the largest companies dedicated to also the fuel marketing, who asked Jennifer Granholm, Secretary of Energy of the neighboring country to the north, the possibility of continuing to work in the country without the obstacles that the administration of President Andrés Manuel López Obrador has placed on them.

Mike Brown, owner of the Energy Business Council (EBC) Mexico united states, backed by firms such as Burns McDowell, AES, Chevron, ExxonMobil, Nema, and the Energy Workforce & Technology Council, asked the US government to review the actions both regarding the reform, whose initiative is being discussed in the Mexican Congress, and the way in which that has worked with the private energy sector in the current administration.

Members of the US private sector EBC They first asked me to have a solid, honest and productive conversation about the future of the Mexican energy sector, “specifically on the negative impacts of the current government’s efforts to roll Mexico back before the 2013 energy reform.”

And it is that according to the companies grouped in this organization, these efforts by the Mexican Government include the new proposal of electrical reform and the challenges that legitimate US fuel marketers face in their operations in Mexico.

Given this, they asked for an accelerated resolution of the multiple stagnation that is hindering US investments and with this, they asked the head of Energy of the United States to contribute some responsibility to the process.

According to the companies, the problem faced in the country is both of substance regarding the activities and regulations in Mexico and of procedure by the Mexican authorities. Regarding the underlying problem, they assured that the proposed counter-reforms of the energy sector will have negative consequences throughout the Mexican energy panorama, stopping the private sector, its investments and the increase in energy and electricity costs for consumers.

They also argued that until March 2021, the private sector has invested more than 21.5 billion dollars in Mexico for the development of large-scale wind and solar projects, thus contributing to the reduction of 19 million tons of CO2 per year.

“U.S. companies have also invested millions of dollars in midstream and downstream infrastructure and logistics that are currently deoptimized or closed by Mexican authorities, which hinders the legitimate private use of operations,” they asserted, “the U.S. private sector wants to be partner of the Mexican government and people and continue investing in cheaper, cleaner and more reliable energy to Mexico”.

Regarding the procedure, although there has been some dialogue with the Mexican authorities, it has been inadequate, so they asked the United States Executive to ask President López Obrador for the opportunity to work with partners from the private sector instead of restricting their access. or even exclude them.

They finally raised the EBC as a platform ready for dialogue between requesting authorities.

karol.garcia@eleconomista.mx

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