Mexico warns of energy crisis without overhaul

MEXICO CITY (Reuters) – Mexico’s will suffer a severe energy crisis before 2018 unless the oil sector is overhauled, Mexican Energy Minister Georgina Kessel warned on Thursday.

President Felipe Calderon unveiled a proposal last month to let private companies participate more in the energy industry to stave off falling oil production.


But the plan has met stiff opposition from leftists, who say the government wants to hand over state oil monopoly Pemex to investors. Mexicans are passionately protective of Pemex, which finances a third of government spending but lacks funds for exploration.

“If we don’t do anything, Mexico will face a severe energy crisis before the next presidential administration ends (in 2018),” Kessel told lawmakers.

Reuters