Agenda
Reserves
This document shows 2009 energy statistics regarding the supply and demand, within the national territory, of all the energy sources, and reviews the information of the previous year. It also incorporates useful information for the analysis of the performance of the energy sector and for the design, formulation and implementation of public policies on this subject.
Climate Change
In the Programa Especial de Cambio Climático 2009-2012 (Special Climate Change Programme, PECC) the Mexican government set CO2 reduction goals. Compliance to PECC at the end of the current administration will result in a reduction of 50 million tonnes of CO2 equivalent in 2012. This means a 6% deviation from the baseline estimate, a consequence of the implementation of a series of actions in sectors such as energy generation and use, agriculture, forestry and other land uses, and waste.
Status
Growth
Mexico is one of the ten largest oil producers in the world, the third-largest in the Western Hemisphere, and an important partner in the U.S. energy trade. However, the amount of oil produced in Mexico has steadily decreased since 2004 due to natural production declines from Cantarell and other large offshore fields ... The onus on arresting or reversing production declines falls squarely on the shoulders of Petróleos Mexicanos (PEMEX), the state-owned oil company .
Targets
Changes in renewable energy markets, investments, industries, and policies have been so rapid in recent years that perceptions of the status of renewable energy can lag years behind the reality. This report captures that reality and provides a unique overview of renewable energy worldwide as of early 2010.
Institutional Structure
Petroleos Mexicanos (PEMEX)
Mexico has been endowed with an abundant energy resource base. If managed properly, these resources could serve to meet the country’s energy requirements and fund other social demands … The key to understanding the energy sector in Mexico is the role of Pemex, whose central position in the energy industry has far-reaching implications. Decisions relating to the company affect not only the oil industry but also the electricity and gas markets, the environment, and indeed the whole economy.
Agency
Institute of the Americas reveals the important political leap Mexico has made in 2008 by approving energy reform legislation aimed at reinventing state-run oil company PEMEX and its financial, managerial and contractual abilities.
Comisión Federal de Electricidad (CFE)
The Federal Electricity Commission (CFE) is a company created and owned by the Mexican government. It generates, distributes and markets electric power for almost 35.3 million customers. This figure represents almost 100 million people. The CFE incorporates more than a million new customers every year.
Ministry of Energy (SENER)
The Ministry of Energy (SENER), mindful of the sustainability objective outlined in the 2007-2012 National Development Plan6, proposed the need for a set of energy efficiency indicators in the most energy-intensive sectors, as well as an improvement in the energy statistics available. As a result, SENER and the International Energy Agency (IEA) began a joint project funded by the British Government through the Strategic Programme Fund (SPF).
Environment and Natural Resources Secretariat (SEMARNAT)
The Ministry of Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales, Semarnat) is a federal government agency which main purpose is to promote the protection, restoration and conservation of ecosystems and natural resources, as well as environmental goods and services, in order to promote their sustainable use and development.
Budget
Current
The ebullient celebration in Brazil over Petrobas' historic $70 billion share-issue last month was bitterly received in Mexico City, where the state-owned oil company Pemex is mired in debt, inefficiency and ongoing political wrangling.
History
The pivotal problems of the Mexican energy sector are associated with the decline in oil reserves and production, the financial standing of PEMEX and growing dependence on imported fuels. Another problem relates to the high consumption of natural gas across all sectors of the economy, but especially in the power sector.
Budget for renewables
In the last 40 years Mexico’s energy sector has been fuel by hydrocarbons, however, Mexico crude reserves will disappear in just 9.3 years given the rate of production and consumption. As 25 percent of national income comes from petroleum, Mexico could experience an unprecedented budget crisis. This paper discusses how renewable energy can bolster Mexico’s economy and production.
Key Policies
2008 Energy Sector Reform
Institute of the Americas reveals the important political leap Mexico has made in 2008 by approving energy reform legislation aimed at reinventing state-run oil company PEMEX and its financial, managerial and contractual abilities.
Renewable Energy and Energy Transition Financing Law
In 2008, Mexico enacted a law (known in English as the “Renewable Energies Exploit and Energy Transition Financing Law” and also known by its Spanish acronym LAERFTE). The 2008 law set forth Mexico’s strategy to favour policies, programs, actions and projects that were oriented toward increased usage of renewable energy sources and clean technologies, that promoted energy efficiency and sustainability, and that decreased oil dependency as the main source of energy.
Energy Saving
In November 2009 the government adopted an energy savings program (PRONASE) for the period 2009-2012. It estimates the energy savings potential at 2 percent in 2012 and 18 percent in 2030, compared to a reference scenario. The plan identifies seven priorities: road transport vehicles, lightning, household appliances, cogeneration, electric motors, energy efficiency standards for new buildings and water distribution.
Miscellaneous
Subsidies
The transport fuel subsidy bill expected to reach 250 billion pesos (approx. US$ 20 billion) in 2008. According to official numbers from the 2008 Mexican government’s budget, the subsidy to gasoline and diesel in 2008 amounts to 2.4% of the country’s Gross Domestic Product (GDP). Isolating gasoline for automobile use, the subsidy turns out to be 0.27% of GDP. The government, therefore, has decided to eliminate the gasoline subsidy gradually, with the price of gasoline rising in monthly, and now weekly, increments.
Transition to Globalisation
Crude Oil; Are We Running Out?
So, oil is our fuel of choice. When will it run out? Oil predictions can easily fall into end of the world scenario categories, so it’s important to sort through the rhetoric and mine out the nuggets of truth. If you don’t sort through the garbage, then simple mathematics can lead you to some pretty disturbing conclusions.
Globalisation > Economy > Energy> Sources > Non-Renewable > Oil
Transition to Tools
What's Hot, Green and Mexican?
Felipe Calderón wants to talk to Barack Obama about drugs—and windmills.
Tools > National > Mexico >Domestic Policies > Environment > Climate
Transition to Actors
Mexico's Ruling Party: The New Old Guard
How ten years in power have changed the former opposition leaders.
Actors >Political Parties>National>Mexico
