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      Local and External Forces: Understanding Key Factors behind Mexico's Energy Reform

      research-article
      Journal of Global Faultlines
      Pluto Journals
      energy policy, geopolitics, geoeconomics, Mexico, oil, Pemex, national oil companies
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            Abstract

            Throughout the logic of geoeconomics and geopolitics, countries become stronger or weaker as a result of how natural resources are wielded. The power derived from the management of natural resources has deep implications for any country. Mexico has recently completed a major energy reform, ending the state monopoly on oil and gas and allowing private companies to invest in the energy sector. The reform aims at boosting the declining oil production and transforming Petróleos Mexicanos into a more competitive enterprise. When the reform was planned and implemented, the oil price was around 95 USD per barrel. However, since 2014, the international market has held decreasing oil prices that are spoiling prospects for a range of high-cost ventures in many countries. Mexico has not been the exception. This article analyzes, through the lens of geopolitics and geoeconomics, the main forces behind Mexico's energy reform. We also conclude that external actors are prevailing on the Mexican energy scenario; that Pemex is becoming weaker, not stronger; and that in the midterm the country's energy security will most likely be in the hands of few international oil companies.

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            Author and article information

            Contributors
            Journal
            10.13169
            jglobfaul
            Journal of Global Faultlines
            Pluto Journals
            20542089
            23977825
            January-May 2017
            : 4
            : 1
            : 41-56
            Affiliations
            Professor of International Business at the University of Veracruz, México. Currently, Academic Visitor at the School of Oriental and African Studies (SOAS), University of London. E-mail: la24@ 123456soas.ak.uk .
            Article
            jglobfaul.4.1.0041
            10.13169/jglobfaul.4.1.0041
            70d776e4-f4a9-44a9-b5f0-0bf14b9d0ab6
            This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Categories
            Articles

            Social & Behavioral Sciences
            national oil companies,energy policy,geopolitics,geoeconomics,Mexico,oil,Pemex

            References

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