Within the first 100 days in the office, Mexico’s AMLO has taken a nationalistic tone on energy. Andres Manuel Lopez- Obrador, the Mexican President, announced plans to progress forward with the construction of a new refinery.
How did the first 100 days for Andres Manuel Lopez in office affect private and foreign investors?
The president’s policies in the last 100 day in office have not been favorable to private and foreign investors. In a showdown with fuel rooters, there is a political pressure on regulators to resign as the officials have canceled all energy auctions, halted pipeline projects and banned hydraulic fracturing. All this comes to pave the way for the building of $8 billion refineries.
Despite living gas stations alone, the new government has canceled all energy auctions for natural gas, oil, and any other renewable contracts. The nationalistic tone aims at restoring the financial stability and production number of Mexico’s state-owned oil company (Petroleos Mexicanos) in the sector of energy.
The $8 billion refineries is a strategy to cut off gasoline and diesel imports from the United States and other foreign nations. The plan to cut off foreign firms from the energy sector was announced by the Mexican Energy Secretary Rocio Nahle last Monday.
How was the energy sector before President Andres came into power 100 days ago?
The former Mexican president had introduced constitutional reforms that saw an end to monopolies and the opening up of the energy market to private and foreign firms on a competitive basis. The policy had made Mexico award over 100 contracts on offshore oil wells and solar farms to multinational companies. The changes had seen foreign private companies opening up a store across Mexico to supply fuel from international businesses like ARCO, BP, Shell, Chevron, Sunoco, and Exxon.