{ "id": "R43313", "type": "CRS Report", "typeId": "REPORTS", "number": "R43313", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 445852, "date": "2015-09-28", "retrieved": "2016-04-06T18:18:13.065121", "title": "Mexico's Oil and Gas Sector: Background, Reform Efforts, and Implications for the United States", "summary": "The future of oil and natural gas production in Mexico is of importance for both Mexico\u2019s economic growth, as well as for U.S. energy security, a key congressional interest. Mexico is a top trade partner and the third-largest crude oil supplier to the United States. Mexico\u2019s state oil company, Petroleos Mexicanos (Pemex) remains an important source of government revenue even as it is struggling to counter declining oil production and reserves. Due to an inability to meet rising demand, Mexico has also significantly increased natural gas imports from the United States. Still, gas shortages have hindered the country\u2019s economic performance. \nOn December 20, 2013, Mexican President Enrique Pe\u00f1a Nieto signed historic constitutional reforms related to Mexico\u2019s energy sector aimed at reversing oil and gas production declines. On August 11, 2014, secondary laws to implement those reforms officially opened Mexico\u2019s oil, natural gas, and power sectors to private investment. As a result, Pemex can now partner with international companies that have the experience and capital required for exploring Mexico\u2019s vast deep water and shale resources. Leftist parties and others remain opposed to the reforms. \nThe energy reforms transform Pemex into a \u201cproductive state enterprise\u201d with more autonomy and a lower tax burden than before, but make it subject to competition with private investors. They create different types of contracts for private companies interested in investing in Mexico, including production-sharing and licensing; allow companies to post reserves for accounting purposes; establish a sovereign wealth fund; and create new regulators. In December 2014, the Mexican government announced the terms of part one of Round 1, under which shallow-water offshore exploratory blocks available for public bidding would be auctioned. On July 15, 2015, Mexico\u2019s Energy Ministry announced that only 2 of the 14 blocks available were awarded to successful bidders. The government has altered the terms of the second round of bidding on September 30, including lowering the amount of upfront investment required by companies to bid and increasing the size of the blocks available, in order to attract more interest.\nThe U.S. Congress has legislative and oversight interests in examining the implications of Mexico\u2019s oil and natural gas reforms on U.S. hydrocarbon imports and exports, bilateral trade and investment, and economic conditions in Mexico. In December 2013, Congress approved the U.S.-Mexico Transboundary Hydrocarbons Agreement (P.L. 113-67), which aims to facilitate joint development of oil and natural gas in part of the Gulf of Mexico. The 114th Congress is likely to consider legislative proposals to speed up energy infrastructure development, including cross-border natural gas pipelines, as was approved by the House on January 21, 2015 (H.R. 161). Congress may also consider proposals to revise U.S. crude oil export policy. See also CRS Report R43442, U.S. Crude Oil Export Policy: Background and Considerations, by Phillip Brown et al.\nThe opening of Mexico\u2019s oil and natural gas sector could expand U.S.-Mexico energy trade and provide opportunities for U.S. companies involved in the hydrocarbons sector, as well as infrastructure and other oil field services. If these reforms accelerate growth and investment in Mexico (as the government has stated), they could also benefit North American competitiveness. Industry analysts maintain that the reforms are generally well-designed, but that the way they are implemented will likely determine their impact. The success of the reforms may also depend on trends in global oil prices. Should oil prices remain at current levels, shale resources and other unconventional fields may not be feasible to develop at this time.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43313", "sha1": "41af6f9523bea71c46fcbd74299117b7848ef843", "filename": "files/20150928_R43313_41af6f9523bea71c46fcbd74299117b7848ef843.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43313", "sha1": "d6d7ef7dd482a6c1255f7ebf61063636f2316ad2", "filename": "files/20150928_R43313_d6d7ef7dd482a6c1255f7ebf61063636f2316ad2.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 2481, "name": "Oil and Natural Gas Markets" }, { "source": "IBCList", "id": 2911, "name": "North America: Canada and Mexico" }, { "source": "IBCList", "id": 4102, "name": "Major Economies and U.S. Trade Relations" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc743528/", "id": "R43313_2015Jul30", "date": "2015-07-30", "retrieved": "2015-10-20T21:35:54", "title": "Mexico's Oil and Gas Sector: Background, Reform Efforts, and Implications for the United States", "summary": "This report provides an overview of Pemex and the content and prospects for Mexico's energy reforms, before discussing specific issues facing Mexico's oil and gas industry. It then examines the U.S.-Mexico energy relationship through the lenses of trade and energy cooperation. It concludes by suggesting several oversight issues for Congress related to what the enactment of energy reform might portend for Mexico's economic development, the U.S. energy matrix, and bilateral or North American energy cooperation.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20150730_R43313_9a3eda406ca7a006477036dd92fa6e616de95325.pdf" }, { "format": "HTML", "filename": "files/20150730_R43313_9a3eda406ca7a006477036dd92fa6e616de95325.html" } ], "topics": [ { "source": "LIV", "id": "Energy", "name": "Energy" }, { "source": "LIV", "id": "International relations -- U.S. -- Mexico", "name": "International relations -- U.S. -- Mexico" }, { "source": "LIV", "id": "Natural gas", "name": "Natural gas" }, { "source": "LIV", "id": "Petroleum", "name": "Petroleum" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc503305/", "id": "R43313_2015Jan27", "date": "2015-01-27", "retrieved": "2015-04-30T17:37:21", "title": "Mexico's Oil and Gas Sector: Background, Reform Efforts, and Implications for the United States", "summary": "This report provides an overview of Pemex and the content and prospects for Mexico's energy reforms, before discussing specific issues facing Mexico's oil and gas industry. It then examines the U.S.-Mexico energy relationship through the lenses of trade and energy cooperation. It concludes by suggesting several oversight issues for Congress related to what the enactment of energy reform might portend for Mexico's economic development, the U.S. energy matrix, and bilateral or North American energy cooperation.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20150127_R43313_e2a2e2e1d8eabccb61ffa1fb10b6aa0d4c9d8ab3.pdf" }, { "format": "HTML", "filename": "files/20150127_R43313_e2a2e2e1d8eabccb61ffa1fb10b6aa0d4c9d8ab3.html" } ], "topics": [ { "source": "LIV", "id": "Energy", "name": "Energy" }, { "source": "LIV", "id": "Petroleum", "name": "Petroleum" }, { "source": "LIV", "id": "Natural gas", "name": "Natural gas" }, { "source": "LIV", "id": "International relations -- U.S. -- Mexico", "name": "International relations -- U.S. -- Mexico" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc491548/", "id": "R43313_2014Oct23", "date": "2014-10-23", "retrieved": "2015-01-27T19:40:46", "title": "Mexico's Oil and Gas Sector: Background, Reform Efforts, and Implications for the United States", "summary": "This report provides an overview of Pemex and the content and prospects for Mexico's energy reforms, before discussing specific issues facing Mexico's oil and gas industry. 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It concludes by suggesting several oversight issues for Congress related to what the enactment of energy reform might portend for Mexico's economic development, the U.S. energy matrix, and bilateral or North American energy cooperation.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20141023_R43313_79463dababf203246b438ddab62d5e8c40661112.pdf" }, { "format": "HTML", "filename": "files/20141023_R43313_79463dababf203246b438ddab62d5e8c40661112.html" } ], "topics": [ { "source": "LIV", "id": "Energy", "name": "Energy" }, { "source": "LIV", "id": "Petroleum", "name": "Petroleum" }, { "source": "LIV", "id": "Natural gas", "name": "Natural gas" }, { "source": "LIV", "id": "International relations -- U.S. -- Mexico", "name": "International relations -- U.S. -- Mexico" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc812008/", "id": "R43313_2013Nov18", "date": "2013-11-18", "retrieved": "2016-03-19T13:57:26", "title": "Mexico\u2019s Oil and Gas Sector: Background, Reform Efforts, and Implications for the United States", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20131118_R43313_ea4b50eea4a88f821e228173730ca6b61c8a765f.pdf" }, { "format": "HTML", "filename": "files/20131118_R43313_ea4b50eea4a88f821e228173730ca6b61c8a765f.html" } ], "topics": [] } ], "topics": [ "Constitutional Questions", "Energy Policy", "Foreign Affairs", "Industry and Trade", "Latin American Affairs" ] }