Mexican arbitration risk builds
Opportunities for foreign investment are being squeezed as authorities strive to roll back energy reforms
Short-term energy market risk is largely on a downslope globally, as vaccinations promise an end to the Covid nightmare in many parts of the developed world and oil prices continue to be buoyant. But in Mexico, government intervention poses a growing critical threat for the private sector. President Andres Lopez Obrador is finally unwinding his country’s landmark energy reforms, and arbitration is already on the cards for many. And discrimination in favour of Mexican state firms has been escalating. “Making the monopoly strong again is their mantra” Lopez Velarde, Ritch Mueller First, the government passed an electricity reform boosting state-owned utility the Federal Electricity Com
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields