The results are in. Andrés Manuel López Obrador (AMLO) will be the next president of Mexico for the 2018-2024 term. As the dust settles and Mexico prepares for the transition, this political shift calls for a closer look into what the next oil and gas policy will look like. For the full scope of AMLO’s plans for the industry, you can consult our piece on MORENA’s National Development Plan 2018-2024.
Spearheading AMLO’s policy platform, the next administration is expected to focus its efforts into strengthening local production for local consumption across all industries. Oil and gas will be no exception. Backed by declarations of his incoming Minister of Energy, Rocío Nahle, the next administration will look to build two new refineries in Mexico, with the possibility of doing so via a Public-Private Partnership. AMLO has said that Mexico will build two refineries, one in Tabasco and another in Campeche, to foster national energy self-sufficiency. Investment for both energy facilities, estimated to produce 300,000b/d of refined products, would be US$6 billion. “We have a clear vision: produce in Mexico,” Nahle said.
AMLO, Nahle and his pick for Minister of Finance, Carlos Urzúa, all agree that PEMEX needs to find more competitiveness into its productive processes. They want to start by eliminating corruption from the NOC’s ranks. Urzúa has been quoted as identifying PEMEX’s trade union as a “beacon of corruption.” Urzúa insists that any and every efficiency gain suitable for Mexico’s NOC, such as labor costs, will be thoroughly evaluated.
Controlled Gasoline Prices
During the presidential debates, both AMLO and the Front for Mexico coalition candidate, Ricardo Anaya, agreed on the necessity to decrease gasoline prices to alleviate the impact on Mexican citizens’ purchasing power, albeit with different methods. Anaya wanted to reduce the taxes imposed on gasoline prices, such as the IEPS, while AMLO seeks to align gasoline prices with inflation.
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