Mexico’s energy reform has led to a remarkable boost in investment, and the expected increase in the country’s crude oil production will strengthen energy security not only for Mexico but also at the regional level. This was the message of Aldo Flores, deputy secretary of hydrocarbons of Mexico and Carlos de Regules, executive director of Mexico’s Energy and Environmental Security Agency (ASEA), at a private briefing for congressional staffers organized by the Inter-American Dialogue on April 6th with honorary co-hosts Rep. Eliot Engel (NY-16) and Rep. Ileana Ros-Lehtinen (FL-27).
Since the energy reform was approved in December 2013, 48 new operators from 14 countries have entered Mexico, pledging almost $49 billion in investments, said de Regules. Nine of these are US companies, which have invested $6.5 billion, or 13%, of total investment in oil licensing rounds so far. In March, ASEA published regulations for unconventional oil and gas production, and Mexico plans to auction areas with shale potential later this year. These investments are likely to give oil production in Mexico – which has been in decline for more than a decade – an important boost.