For more than a decade, energy reform has been a hot issue that has brought up many controversial debates in Mexican society. In Mexico oil has been perceived as a “Symbol of Mexican Sovereignty” since the Mexican revolution. According to the 1917 Constitution, only state has the right to control the energy sector. Because of this consitutional restraint, which can be translated by other people as the consitutional protection, Mexican government has the monopoly of energy sector for more than 70 years through PEMEX. However, oil industry and PEMEX has been showing many serious problems like declining oil reserves, oil production and heavy indebtedness of the state company. To overcome those problems, energy reform has been discussed for many years, and the new law has been enacted recently late last year. This article analyzes the background of energy reform and the contents of the new law. Also try to discuss in a limited range the possible political economic implications of the mexican energy reform.

For more than a decade, energy reform has been a hot issue that has brought up many controversial debates in Mexican society. In Mexico oil has been perceived as a “Symbol of Mexican Sovereignty” since the Mexican revolution. According to the 1917 Constitution, only state has the right to control the energy sector. Because of this consitutional restraint, which can be translated by other people as the consitutional protection, Mexican government has the monopoly of energy sector for more than 70 years through PEMEX. However, oil industry and PEMEX has been showing many serious problems like declining oil reserves, oil production and heavy indebtedness of the state company. To overcome those problems, energy reform has been discussed for many years, and the new law has been enacted recently late last year. This article analyzes the background of energy reform and the contents of the new law. Also try to discuss in a limited range the possible political economic implications of the mexican energy reform.

Mexico, Mexican Revolution, Energy Reform, Oil Industry, PEMEX