President Enrique Peña Nieto received the “IHS
Ceraweek Global Energy Lifetime Achievement Award” in the city of Houston,
Texas, as recognition of the modernization Mexico has undergone as a result of
"I receive this award on behalf of all Mexicans. The advances in energy you have highlighted today are not the result of
the work of one man or even a single government; They are the result of the
collective effort of an entire nation that is being transformed.”
Mexico had to promote sweeping changes to break down barriers, catch up and unleash
its potential. The diagnosis of analysts and experts was clear: structural reforms were required in various priority sectors.
The Pact for Mexico was signed on the second day of
the current administration. As result of
this and an intense legislative process, 13 transformative reforms were
adopted, Including Energy Reform, the most important economic change in the past
50 years. This represents a paradigm shift in the way energy
resources are obtained, transformed and exploited.
As a result of this reform, the Mexican state retains
ownership of sub-soil hydrocarbon resources while at the same time allowing
private participation in the entire value chain in hydrocarbons and practically
the entire electricity industry.
The design of this reform has been recognized for its
breadth and depth, together with the surprising speed and professionalism of
its implementation. Despite the complex international environment, Energy
Reform is being adopted, successfully and more quickly than expected.
In 2013, the Constitutional Reform was passed,
followed by the Secondary Legislation in 2014.
As for the electricity sector, the Reform makes it
possible to offer more competitive rates for industry, commerce and households.
January saw the start of the new Mexican Electricity
Market, which permits free competition in the generation and sale of
Now public and private companies, both domestic and
foreign, have the ability to produce and sell energy. The
fundamental principle of this new electricity market -in favor of consumers-is
that the cheapest energy is dispatched first.
This opens up unprecedented opportunities for
investing in the electricity sector. In the second quarter of this year, the Federal Electricity
Commission will invite tenders for the first major transmission line, with private
participation, as part of Energy Reform.
This major infrastructure project will allow clean
energy -wind and hydraulic- from the Isthmus of Tehuantepec, to flow and meet
demand in the center of the country at a distance of 600 kilometers (372 miles). It will be the first line to be built in Mexico powered by high voltage direct
current technology, with an estimated investment of 1.2 billion USD.
There is also a new Law on Energy Transition, which facilitates the incorporation of clean
energy into the electricity generation matrix. As a result, the
electricity generated from clean sources will account for 35% of total
production in 2024, 40% in 2035 and 50% in 2050.
In the hydrocarbon sector, Round Zero was held in
2014 and in 2015, the first three tenders for Round One took place, in keeping
with the highest international standards of legal certainty and transparency.
Thirty contracts were allocated the same number of
national and international companies, giving rise to a new oil industry in
Three principles of the implementation of Energy
FIRST. Regardless of what happens in the international environment, Mexico is
proceeding with the implementation of Energy Reform. The government is committed to implementing Energy Reform to ensure its
full, effective and timely implementation.
Despite low international oil prices, the world is
trusting and investing in Mexico. All the planned bids for contracts for 2015 were
held, and increasingly successfully.
SECOND. The Mexican government will continue to implement Energy Reform, based on
the highest standards of transparency and accountability.
THIRD. Efforts continue to ensure that the Mexican energy sector is
characterized by quality regulatory and contractual practices, to give full
certainty to investors, with a stable, competitive fiscal framework.
The current rate of bidding for contracts for hydrocarbon
extraction will be maintained. In early December, the fourth bidding of Round One
will be held, corresponding to the exploration sites located in the deep waters
of the Gulf of Mexico.
"Mexico is determined to have the technological, financial and risk
management capacity developed by the global oil industry for this type of