Insight
How can a leftist President affect Mexico’s energy policy?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Mexico will hold presidential elections on 1 July and Andrés Manuel López Obrador has a comfortable 23-point lead over his closest competitor. During the campaign, his energy policy has generally been one of resource nationalism, and scepticism towards strong private sector participation. Yet we expect that once in power, he will maintain a more pragmatic approach, with an emphasis on strengthening Pemex and CFE, but leaving room for private investment throughout the value chain.
Table of contents
- Leftist candidate Andrés Manuel López Obrador is set to win the 1 July election
- Government stability is not at risk
- Macroeconomic stability will hold, albeit with lacklustre growth
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What can we expect from AMLO’s energy policy?
- Expect delays in regulation but no major changes in the energy framework
- In Upstream, we would expect a temporary halt to new bidding rounds and Pemex JVs
- Proposal 1: Increase oil production to 2 million b/d by 2024 and 2.5 million b/d by 2035
- Proposal 2: Review awarded contracts
- Proposal 3: Suspend Pemex’s farm-out programme pending review
- Proposal 4: Increase Pemex's budget, cut unnecessary spending and modify its fiscal regime
- In Downstream, emphasis on infrastructure projects will be curtailed by lack of capex availability
- Proposal 5: Build at least two refineries with a capacity of 300 kb/d, adding a gasoline supply of 275 kb/d to the domestic supply
- 9 more item(s)...
Tables and charts
This report includes the following images and tables:
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Voting preferences, June 2018Year-on-year differential of Mexico's oil production (1970-2024)Maya crude balance
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Isthmus/Olmeca crude balanceGas flaring evolution (2010-2017)Fuel costs comparison
What's included
This report contains:
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