Mexico Passes Fresh Energy Laws

October 13, 2014

Recently, Mexico’s congressional lower house passed a series of laws that will change various manufacturing in Mexico sectors. These laws signify the completion of Mexico’s energy overhaul, which started last year and is expected to bring in lucrative investments from foreigners. One of the most important aspects of this change is it will allow foreign investors to invest in Mexican manufacturing and the oil industry in a profitable, easy manner.

So far, the changes to Mexico’s energy laws are starting to reflect on the country’s manufacturing and energy sectors. For example, foreign investment in manufacturing has created 100,000 jobs since 2010. Furthermore, foreign investors in the oil industry, particularly US companies, are looking to start drilling Mexico’s 50 billion boe in reserves. There is also the opportunity to explore Mexico’s estimated 60 billion boe in untapped reserves, which will be the largest expropriation of Mexico’s oil since 1938.

However, Mexico is seeing economic growth that is helping the country to recover from the economic crisis of 2008 and 2009 thanks to exports. Mexico saw economic growth in the second quarter, primarily credited to 5.4 % increase in non-petroleum exports. This increase in exports is credited to a stronger link between the United States and Mexico in economic exports and trade. This growth is being witnessed in all sectors of manufacturing in Mexico, primarily in the automotive industry. This, in return, has helped the countries that have invested in Mexico to see economic growth as well. For example, the United States saw a 4% economic growth in the second quarter as well. This is good news for Mexico as well, because of how interlinked both economies are. If Mexico is doing good economically, than the United States is too.

Therefore, this is a great time to start investing in Mexico’s energy reserves and manufacturing sectors. The changes to the new energy laws are starting to take affect, and so far, it looks good for Mexico, and the countries who trade and invest in the country as well. There are a lot of opportunities for foreign investors to begin work in the oil and gas industry, and other manufacturing sectors in Mexico thanks to these new laws, but also to the economic growth Mexico is experiencing thanks to increased exports. This, in return, will help to build Mexico’s manufacturing sectors both domestically and abroad for the countries that invest in Mexico’s energy and manufacturing sectors. Already, the United States and Mexico are starting to see the results, enough to where experts are hailing that this is indication of some of the last stages towards economic recovery from the 2008 and 2009 economic crisis. The world has yet to see the full impact of these new reforms, however so far, it looks good for Mexico, the United States, and any other country who gets involved in exporting and/or investing with Mexico in the near future.