“MEXICAN MOMENT” or “TEXAS MOMENT” of the Energy Reform
By Marcial Díaz Ibarra
Marcial Diaz Ibarra is a lawyer, consultant of the Energy Sector, with studies in Public Administration. Collaborated in the Legal Department of Pemex for over 10 years, being Legal Assistant at Pemex Refining, Pemex Gas and Basic Petrochemicals and Pemex Exploration and Production, serving in contentious and advisory matters, as an Advisor in the Committees of Procurement under the New Regimen under Pemex Law and the DACS such as: Acquisitions, Public Work, CAAOS, Subcaaos and the Board of Directors. firstname.lastname@example.org
In the last weeks we listen, we read and we got saturate by the media with the “Mexican Moment” is all that gives; here are some examples:
But not all that glitters is gold as the International Monetary Fund in its report “Global Economic Prospects: Aftermath, Clouds, Uncertainties”, contemplates that this year GDP growth in Mexico will be 2.4 percent and the forecast by 2015 it stood at
The big question is why is this happening, when on one hand we announce the billions of dollars that will arrive with the Energy Reform and on the other hand, the economy is not growing any more.
The reason is simple: the actual results of these structural changes will be reflected until 2019, since in August 2015 the contracts will initiate and by 2016 the investments related to them.
The big challenge in the implementation of the reform is: the decline in oil prices, the over-regulation and attractive contracts fiscally speaking.
But there is the other side of the coin where some are more benefit than others and if we talk about Texas, where it is envisaged that derived from the “Mexican Moment”, “Texas remains the main beneficiary of the reform due to the deep economic ties, geographical proximity and experience in energy exploration, production and distribution”, so said Nathaniel Karp, chief economist at BBVA Compass bank.
- At least 200,000 jobs will be created.
- More than 3 billion dollars in state
- Impact on about 45 billion dollars to the Gross Domestic Product (GDP) of the entity
The good news is that “Texas is almost part of Mexico” so we can continue to enjoy the “Mexican Moment”.