Mexicos energy law reform
Mexico: The output of Mexican oil and gas facilities is in decline, new crude oil deposits cannot be explored because of outdated technology, and electricity prices for the industry are 25 40% higher than in the United States, the countrys key trading partner. With this backdrop, a reform of the energy sector was inevitable, according to Sebastian Brenner and Mariangela Zerpa Dreyer of Rödl & Partner, an integrated firm for audit, legal, management and tax consulting.
After several stages of nationalization from the beginning to the middle of 20th century, Mexico’s oil industry and almost the entire power industry are under state monopoly. Previous attempts to break the state monopoly and liberalize the market have yielded results in the area of power generation; in other areas of the power sector, such …
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