Mexico's Energy Security Debate: Shaping the Future of the Energy Sector

A new concept of energy security is gradually emerging in Mexico as energy affairs have regained prominence in the country's political agenda in light of the upcoming congressional and presidential elections on July 2, 2006. In this Private Report, CERA examines the numerous meanings of energy security to Mexico's state and industry players.

* Energy security still implies government responsibility to develop resources and create conditions to assure Mexico's economic growth. However, changes in Mexico's economic structure and a new set of emerging realities confronting the energy sector are challenging the traditional view of energy security.
* The concept of energy security in Mexico is beginning to shift away from the strict sense of control of resources and the rent associated with them and toward security of supply throughout the energy chain.
* Two divergent views for the energy security concept are prevalent in the country. One view would reinforce self-sufficiency as a priority and a reason for greater participation of private capital in the energy sector. The other would retain the traditional concept of energy security and demand tighter government control over the sector and its resources.

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CERA Reports Online, a wholly owned subsidiary of IHS Energy, is a leading advisor to international energy companies, governments, financial institutions, and technology providers. CERA delivers critical knowledge and independent analysis on energy markets, geopolitics, industry trends, and strategy. CERA's expertise covers all major energy sectors--oil and refined products, natural gas, and electric power--on a global and regional basis.