On July 31, 2013, Partido Acción Nacional (PAN), Mexico’s main opposition political party, delivered a highly anticipated energy reform proposal to the Mexican Senate, which, if passed, has the potential to revolutionize the Mexican energy sector. The proposal calls for amending the Mexican Constitution and opening the country’s oil and gas and electricity sectors to private investment and competition, among other proposed reforms. The main changes proposed are the following:
- Open the oil and gas upstream sector to private investment and competition;
- Establish the National Hydrocarbon Commission as the grantor of E&P oil and gas concessions;
- Open the oil and gas downstream and midstream sectors to private investment and competition;
- Open the power sector to further private investment and competition;
- Create the Mexico Oil Fund to administer oil profits and seek to decrease the government’s dependence on oil revenue;
- Provide PEMEX and CFE with more autonomy and make changes to each of their corporate governance policies; and
- Focus on sustainability and climate change.