Mexico Unleashes Private Sector for Energy, Economic Growth
(Washington, D.C.) – The legislature of Mexico has given final approval to a historic package of reforms to the nation's energy sector. The measures bring to an end the 76-year old government monopoly on energy production in the country, which has led to declining production and investment, and higher prices over time. The changes are expected to lead to an additional $50 billion in annual private investment by 2020, creating up to 2 million new jobs. They will also help the country take advantage of its more than $13 billion barrels in oil reserves – reserves that may have appeared harder to access as forecasts for annual production fell to their lowest level in at least 24 years. The Mexican reforms come as White House officials are preparing to travel to North Dakota to study that state's energy success, and determine what lessons it may offer for a national energy strategy.
Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:
"Mexico's energy sector is a great example of what happens when government takes greater and greater control over activities that are better handled by the private sector. Excessive government regulation deters innovation, wastes money, and kills jobs and growth. It also opens the door to corruption, cronyism, and self-dealing and the corruption at Mexico's Pemex has been front and center in the news – angering many in Mexico's growing middle class. Looking at the failure of government control, the people of Mexico have recognized that without private sector dynamism, things simply will not get better. They are emulating states such as Texas and North Dakota – which have maintained rules that encourage rather than inhibit energy production, and which are enjoying vibrant economic growth as a result.
What is working for Mexico and for many individual states can work in Washington as well. It's time for D.C. to allow entrepreneurs to invest and grow the economy."
For interviews with a LIBRE representative, please contact: Brian Faughnan, 571-257-3309 or Steven Cruz, 202-578-6173