The government of Mexico has finally passed historic legislation enacting energy reform.  

The reform opens up Mexico’s energy sector to private companies which can bid for the rights to drill and share in the profits, whereas before they could only be subcontracted.  Another goal is to make the state oil company PEMEX (Petróleos Mexicanos) more transparent, autonomous and productive.  And, the private production of electricity is allowed by the new legislation.

It is indeed historic legislation, but it still remains to be seen how well it is going to work out.  It would be prudent to take a look at the potential pitfalls that the legislation’s enactment could face.  Hopefully they can be, as much as possible, avoided.  

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Article by Allan Wall, published August 25th, 2014, on

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