Monday Nov. 20, 2018 presidential election candidate Andrés Manuel Lopez Obrador presented the National Development Plan of his party the Movimiento de Regeneración Nacional (MORENA). This 400 page document has a chapter dedicated to the energy sector within the strategic axis of economic development. This chapter starts with an analysis of Mexico’s hydrocarbons. In the following are translations of the principal bullet points regarding the oil and gas sector.
• Expand exploration and production of natural gas to stimulate the Mexican petrochemical industry.
• Realize the necessary investments in PEMEX.
• Postpone PEMEX’s farmouts until the legal framework is modified.
• Eliminate regulatory asymmetries to which PEMEX is subject throughout the hydrocarbon value chain.
• Suspend the legal restrictions which impede PEMEX from competing in national and international markets.
• Give PEMEX full budgetary and administrative autonomy.
• Integrate PEMEX into one single company and radically modify its corporate governance, so it can exercise its autonomy.
• Make possible that PEMEX’s becomes a developer and owner of technologies which can assist it in its own performance.
• Make public assignments of blocks given to PEMEX by the Ministry of Energy.
• Establish that in the case of trans-border reservoirs PEMEX will be the operator on the Mexican side.
• Make the gasoline market more flexible until real conditions are present for the creation of a fuel market.
• Make norms of energy efficiency in the transportation sector more strict.
• Discuss the finances behind fuel prices from a social, economic and environmental standpoint in such a way as to reflect environmental externalities and to create disincentives for the use of private cars. Maintain a high tax rate with the condition that a substantial part be used for financing public transport and environmental protection.
Refineries and midstream
• Conclude as quickly as possible the reconfigurations and improvement projects pending in the National Refinery System.
• Recover the Bicentenario Refinery project in Tula Hidalgo and build another similar refinery in the Gulf of Mexico.
• Expand and modernize the infrastructure for the storage, transport and distribution of hydrocarbons.
• Expand networks of natural gas pipelines to regions which do not have access to the hydrocarbon.
• Revise processes of adjudication and legality of contracts signed.
• Guarantee public communication and consultation of authorizations, contracts, assignments, permits, alliances, partnerships, associations, and joint investments which the State concedes or subscribes to with private organizations.
• Make public in the most simple and detailed manner possible the results of exploration and production of hydrocarbons.
• Integrate regulatory organs in a plural manner, so as to avoid regulatory capture by private interests.
• Establish obligations for investment in community development in all energy projects.
• Permit and foment the freedom of oil sector workers to associate in unions.
• Indissolubly associate energy policy with environmental and industrial policy.
• Evaluate the performance of international licenses for exploration and production.
• Balance the commercial deficit in energy products, emphasizing the reduction of demand.
• Evaluate the participation of Mexico in the International Energy Agency, created to defend the interests of the industrialized countries against oil producers.
• Explore the possibility of a closer and better coordination with OPEC.
• Take away from oil operators the possibility of creating areas outside of the control and sovereignty of the Mexican state.