Image credits: Marcelo Ebrard on Twitter
News Article

US Secretary of Energy to Visit Mexico

By María José Goytia | Thu, 01/20/2022 - 13:12

President Andrés Manuel López Obrador has announced the visit of Jennifer Granholm, US Secretary of Energy, to Mexico. Granholm will arrive this week and will meet with her counterpart Rocío Nahle along with chancellor Marcelo Ebrard to discuss relevant topics in the bilateral agenda regarding the president’s electric bill and the purchase consolidation of the Deer Park refinery.

“There is not a specific topic on the table, all topics will be discussed. We will inform her the reasons for why we are introducing the electric bill, if it’s necessary and she asks for my opinion, I will be glad to share it with her.”

Granholm’s visit occurs amid the debate surrounding the president’s electric bill at a time when the US government has expressed their concerns regarding potential regulations in the Mexican electric market. Last week, Jayme White, the US Deputy Commercial Representative expressed concerns in regards to loyal competition in the Mexican electric market during a meeting with Mexican Undersecretary of International Commerce, Luz María de la Mora. White’s concerns were supported by a US Senate open letter sent to US Commercial Representative, Katherine Chi Tai, expressing the same concerns. Also, during Granholm’s visit, the Mexican Congress began open parliament discussions about the electric bill reform.

The president mentioned his intentions to communicate to Secretary Granholm for approving the sale of the Deer Park refinery. This week PEMEX plans to complete the purchase, as the Ministry of Finance (SHCP) has disposed MX$20 billion (US$980 million) to complete the transaction.

Experts have critiqued the president´s approach to his energy policy, since it would cause a negative impact on climate change, energy efficiency, and energy costs. López Obrador´s goal is to strengthen state-owned enterprises CFE and PEMEX at the expense of the private sector. Since the enactment of the 2014 Energy Reform, many US companies have invested in the energy sector in Mexico. Jeopardizing their investments also violates the USMCA agreement between the three countries.

The data used in this article was sourced from:  
Reuters, Infobae, Bloomberg, Radio Fórmula, El País, Mexico Business News, Oil & Gas Magazine
María José Goytia María José Goytia Journalist and Industry Analyst