{"id":15863,"date":"2018-07-03T16:12:10","date_gmt":"2018-07-03T21:12:10","guid":{"rendered":"http:\/\/nrgibroker.com\/?p=15863"},"modified":"2018-07-03T17:08:26","modified_gmt":"2018-07-03T22:08:26","slug":"mexicos-incoming-leftist-president-could-upend-us-mexico-energy-relations","status":"publish","type":"post","link":"https:\/\/nrgibroker.com\/en\/mexicos-incoming-leftist-president-could-upend-us-mexico-energy-relations\/","title":{"rendered":"Mexico\u2019s\u00a0incoming leftist President could open\u00a0US-Mexico energy relations"},"content":{"rendered":"

The Daily Caller \/Jason Hopkins \/ July 2<\/a><\/p>\n

 <\/p>\n

The election of Andr\u00e9s Manuel L\u00f3pez Obrador as Mexico\u2019s next president has investors around the world on edge, waiting to see how the leftist leader will approach the oil and gas industry.<\/p>\n

L\u00f3pez Obrador handily won Mexico\u2019s presidential election Sunday, capturing over 53 percent of the vote \u2014 more than double the percentage of the second-place finisher. His victory brings a new era of progressive populism to the U.S.\u2019 southern neighbor. A member of the National Regeneration Movement Party, L\u00f3pez Obrador touts a far-left pedigree: universal access to public colleges, an expansion of welfare programs, increased investment in industries and other big government proposals.<\/p>\n

The president-elect\u2019s calls for energy reform, however, has been the most striking to international observers. L\u00f3pez Obrador pledged during the campaign to hold a referendum on reforms the country made several years ago that embraced measured degrees of privatization of the country\u2019s oil sector.<\/p>\n

Outgoing President Pe\u00f1a Nieto opened the country\u2019s petroleum industry in 2013 to foreign investment, ending a decades-old monopoly held by Pemex, the country\u2019s state-run petroleum company. The move was intended to revive Mexico\u2019s oil and gas production, which is plagued with rampant inefficiency, debt and outdated equipment.<\/p>\n

During the 2018 campaign, L\u00f3pez Obrador derided these pro-market reforms. While promising to honor existing oil contracts, he believes the country should prioritize nationalization of the industry once again.<\/p>\n

\u201cAs a long-time ally of national labor unions and a supporter of a strong [Pemex], [L\u00f3pez Obrador] may seek to maximize national investment and employment in the sector, hedging Mexico\u2019s political risk, even at the cost of economic efficiency,\u201d David Goldwyn, chairman of the Atlantic\u2019s Global Energy Center Advisory Group, noted Sunday.<\/p>\n

Such reforms could have major implications for Mexico-U.S. energy relations, which hold very deep ties.<\/p>\n

The U.S. currently exports a large amount of gas across the border and the Mexican government, in turn, sends heavy crude to American consumers. As crude oil imports to the U.S. has declined over the years, the trade imbalance between the two countries has shifted. U.S. energy exports to Mexico now exceeds its imports, according to the Energy Information Administration. These issues may come up as the Trump administration is set to renegotiate key agreements within the North American Trade Agreement with Mexico and Canada.<\/p>\n

L\u00f3pez Obrador, for his part, is no fan of Trump. The longtime Mexican politician wrote a book entitled \u201cOye, Trump\u201d (\u201cListen, Trump\u201d) that blasts the American leader for his calls to build a border wall and his \u201cattempts to persecute migrant workers.\u201d The book includes a number of speeches L\u00f3pez Obrador has given. In one such speech, he compared Trump to Hiter, saying \u201cTrump and his advisers speak of the Mexicans the way Hitler and the Nazis referred to the Jews, just before undertaking the infamous persecution and the abominable extermination.\u201d<\/p>\n

 <\/p>\n

The Daily Caller \/Jason Hopkins \/ July 2<\/a><\/p>\n

 <\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

The Daily Caller \/Jason Hopkins \/ July 2   The election of Andr\u00e9s Manuel L\u00f3pez Obrador as Mexico\u2019s next president has investors around the world on edge, waiting to see how the leftist leader will approach the oil and gas industry. L\u00f3pez Obrador handily won Mexico\u2019s presidential election Sunday, capturing over 53 percent of the […]<\/p>\n","protected":false},"author":18,"featured_media":8145,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1516,1518,1474,1017,1475],"tags":[684,1597,1751,232,1566],"class_list":["post-15863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-international-markets","category-mexicos-energy-reform","category-news","category-oil-gas","tag-estados-unidos","tag-mexicos-energy-reform","tag-oil-and-gas-industry","tag-pemex","tag-us"],"_links":{"self":[{"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/posts\/15863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/comments?post=15863"}],"version-history":[{"count":0,"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/posts\/15863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/media\/8145"}],"wp:attachment":[{"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/media?parent=15863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/categories?post=15863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nrgibroker.com\/en\/wp-json\/wp\/v2\/tags?post=15863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}