Public-Private Alliances Key to Mexico’s Energy Future: AMEXHI

AMEXHI called on Claudia Sheinbaum to reconsider public-private partnerships as a strategy to develop more oil fields, especially in unconventional areas, and to increase natural gas production in Mexico. According to the organization, these actions could generate budgetary benefits of nearly US$160 billion.

In the document, titled 2030, Mexico’s Growth: Proposals from the Hydrocarbon Sector to Harness Mexico’s Energy Potential for the Benefit of its Citizens, AMEXHI outlines three key objectives. First, to ensure the Mexican government has sufficient budgetary resources to address population growth and maintain the continuity of social programs and debt repayment. Second, to promote sustainable development in the sectors that supports the energy transition and the decarbonization of the electricity industry. Third, to enhance the country’s energy security.

Alberto de la Fuente, President, AMEXHI, emphasized the importance of ensuring a reliable electricity supply to maintain the competitiveness of the Mexican industry and capitalize on the opportunities offered by nearshoring. To achieve these goals, AMEXHI seeks close dialogue with the team of president-elect Claudia Sheinbaum. 

AMEXHI also proposes that the government allocates 53% of prospective resources to oil fields that do not yet have an assigned operator, most of which are unconventional. Merlin Cochran, Director General, AMEXHI, explained that the intention is for private companies to take on the financial risks of these fields, which are more complex and have shorter lifespans, while the government and PEMEX can focus on more profitable conventional fields.

De la Fuente highlighted that Mexico's energy security heavily depends on the natural gas sector, as the country imports 75% of its natural gas from the United States, with 85% of it coming from unconventional fields. Although this gas is the cheapest worldwide, global risks highlight the need to increase domestic production to avoid potential supply chain disruptions. For this reason, AMEXHI also suggests reviewing the policy that bans fracking in Mexico to boost oil and natural gas production.