Political Juncture: Mexico Ready for a Stronger Energy Sector

Mexico is facing a strategic dilemma, specifically within the energy sector in all its variants. The next few years will be decisive and complex when it comes to the energy industry in general, and for defining its course and the national strategy for the short, medium, and long term, regardless of the current circumstances (political and economic). Today more than ever, the need to externalize the message of the importance of this sector is palpable among all the preponderant actors. The need and demand for energy in this country for the coming years is clear, which is why both the private  and the public sectors must continue working together, betting on guaranteeing the necessary supply of energy that our country demands.

From the trenches of the private sector, there is a certain expectation, the most relevant being the following question: What national strategy will be implemented in the medium and long term by the preponderant political ambience regarding the eventual election process in Mexico? 

There is constant talk of energy self-sufficiency, of the need to strengthen the electricity industry, increase the production and refining capacities of hydrocarbons,  strengthen and increase the development of renewable energy projects, increase the capacity and infrastructure of natural gas projects and for the immediate need that the nearshoring will bring in relation to the increase in energy demand, to strengthen the state's productive enterprises, to create an environment of better understanding between private industry and the public sector, to strengthen and increase the use of domestic resources and, most importantly, to guarantee energy security through a consolidated energy matrix.

All the above is frequently heard in different media outlets and by various actors in both the public and private sectors. Ultimately, given the importance and relevance of the issue and the circumstantial political situation that currently prevails in Mexico, the energy issues take on a certain relevance. The same preponderant representatives of the public sector seem to be seriously interested in including the energy agenda as a strategic issue in their agendas. From the perspective of the private sector, we understand the importance and relevance that this is generating; understanding that the energy demand is enormous and requires a huge investment to develop the strategic infrastructure projects necessary to meet that energy demand. 

It is not possible to speak only from the perspective and approach to the matter of the government, political parties, or by the election process in hand, either directly or indirectly, and by those who are including the energy matter within their agendas. We find ourselves in a dilemma in which both the message and the strategy that is being proposed for this issue must be reinforced. It seems that, although an atmosphere of relevance and importance has been created, it is still not entirely clear what strategic plans, agenda and route will be proposed in this regard in the coming months, let alone years to come, by these actors.

Among various sources, there is still talk of the great demand for energy that will persist in Mexico over the next few years given the famous topic of nearshoring, the start-up and impact of the Olmeca refinery, the development of projects adjacent to the Isthmus of Tehuantepec, new LNG projects, expansion of oil rounds, strengthening of infrastructure within the gas pipeline network, increases in investment in renewable energy projects, strengthening of the infrastructure of the electricity industry and other relevant issues. It seems that regardless of the polarization in which the industry is submerged, which is related to certain circumstances that have prevailed in recent years within the sector, it must remain relevant and important to all parties (private and public) involved. That is why a forceful, clear, and concise agenda and strategy must be defined, which goes hand in hand with the development of relevant plans that converge within the interests of the public and private sectors, obviously. 

A strong energy matrix cannot be determined or structured without the participation and will of all parties. At this precise and conjunctural moment, and today more than ever, the issue must be opened to debate. And most importantly, the message must be clear from each of the participants in this great national process (government elections), which will be decisive for the generation of an environment of certainty, not only for the private industry, as a preponderant and important actor in this sector, but also for all of Mexico to understand the importance that this represents for our country, national and foreign economy, and for our future generations. The private sector is not just a temporary or momentary strategic ally; on the contrary, we understand that the relationship with each of the public actors (government) is relevant and extremely important. What is defined as a national strategy route or as an energy matrix for the sector is no less important on the part of those who define or implement it. We are fully confident that any route or agenda that is defined for the coming years will be an agenda or route that we must cement together.

That is why today more than ever, and taking into consideration the importance and relevance of the energy sector in Mexico, this precise juncture will surely define, maintain, or change the spectrum of vision of the national energy strategy. For the private sector, it is of utmost importance to understand the message of the preponderant actors leading the energy strategies for the leading government parties involved in this coming election process, which will be determined in the coming months and years, not only as central axes of accompaniment or generation of strategic investments that will add to what has already been implemented or to what is determined by the new strategic guidelines. We will continue to work hand in hand to consolidate and generate the necessary certainty of strategic projects and the supply of energy necessary to meet the energy demand in the coming years in Mexico. We reiterate the need for a more concise and comprehensive message, and for a strategic approach accompanied by a strong national strategic plan, which will serve as a basis for generating a resounding message, which is not only clear to the private sector but also to all Mexicans. The first step is on the part of those current relevant actors and those who are participating in the current political process, which will certainly define the course and create certain relevant paradigms within the future national energy market.