Americans Fuel Up On Cheaper Gas Over The Border Of Mexico

The Mexican government’s announcement with respect to opening the country’s energy sector to outside investment made its way into some of our recent Energy News Roundups, but this is such an important story – with roughly 1 million barrels per day or more oil production at stake – today’s roundup features 3 stories detailing the decision’s history, implications and challenges.

Mexico nationalized its oil industry in 1938, a move that’s symbolized national pride ever since. “The cultural bias against foreign oil companies is heavily ingrained in the Mexican psyche,” and talk of inviting outside companies back has been politically toxic, perhaps until now. [Forbes]

There is a lot of discussion concerning the legal and financial details associated with the constitutional changes currently under discussion. Particularly, whether the terms offered to international companies would be attractive enough to secure investment. Government officials reportedly conferred with the US Securities Exchange Commission for several months regarding the issue of oil and gas reserve booking. [Financial Times]

The proposed constitutional changes still need to pass a vote, but discord among various political parties remains. “Former PRD presidential candidate Andrés Manuel López Obrador…has called for a march to Mexico City’s Zocalo public square on Sept. 8 to protest the reform.” [Christian Science Monitor]