Energy Reforms in Latin America: What the Mexican State Needs to Learn
The growing importance of developing countries’ national oil companies to the global supply-demand balance raises questions about the emerging policies of association, objectives and regulations of these organisations. In particular, shifts in those policies will have a great impact on the future development of global oil and gas markets, not to mention the socioeconomic development of the companies’ host countries. National oil companies are expected to control a greater proportion of future oil and gas supplies over the next two decades, as these commodities in the mature producing regions of the OECD countries continue to show natural decline of supply. The International Energy Agency projects that most of the new hydrocarbons supply will come from the developing world in the next 20 years. Latin American countries will play a pivotal role in this transition, as the region possesses more than 20% of the world’s known reserves (Ortiz, 2011). Along these lines, Brazil, Colombia and recently Mexico have embarked on major restructuring of their energy sectors. In the early 2000s, the Colombian oil industry was waning: its production started to decline due to a lack of major new discoveries and output fell considerably from 1999 to 2004 (CAEAG, 2010, p. 6).…
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