Mexican’s energy industry has been transformed in the past two years by a reform program to open up its industry. The government of President Enrique Pena Nieto is expected to leave office in December after the July election. Coldwell said no matter who takes office, the reform program cannot be altered and is constitutionally guaranteed.
“The energy reform in Mexico has no reason to be changed with a change in government and elections because it’s been very successful. The opening of the energy sector in Mexico represents nearly $200 billion in investment,” he said. “To cancel those investments will also translate into canceling thousands of jobs.” Coldwell said the energy sector is ultimately expected to result in 800,000 Mexican jobs.
Energy Secretary Perry told CNBC that the Mexican reforms should be secured because they are in place constitutionally. “They are good for the Mexican people,” he said.
In the final 10 months of Peno Nieto’s term, five more bidding rounds are expected for onshore and offshore projects. There will be bidding for transmission lines to connect renewables with centers of consumption, and for clean energy. There is also an opportunity for bidders to bring the type of drilling, or hydraulic fracturing used in Texas, south of the border.
“Eagle Ford continues into northeastern Mexico. On Sept . 5, we are going to have our first bidding award for unconventionals, nine blocks of gas,” he said.
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