Mexico Proposes Energy Rules to Attract Investment

By Nick Cunningham: The Mexican government has released its much-anticipated new rules on its oil sector, putting some meat on the bones of major energy reforms it announced last year. The rules appear to be crafted with the intention of attracting quick investment from international oil companies, according to the Wall Street Journal. Mexican President Enrique […]

Mexico Readies to Join North American Oil Boom

U.S. oil production last month reached its highest monthly total in 25 years. South of the border, the story is different, though Mexico’s decision to end a state oil monopoly in place for 75 years may consolidate the America’s supremacy over the international energy market. Mexican legislators passed a reform ending the 75-year state grip on the […]

Risks Abound in Mexico’s New Oil Laws

Much has been made of the recent announcement that Mexico is seeking to update its oil laws, allowing foreign companies a role in the industry for the first time in decades. How serious investors should take the news depends largely on how the political process plays out in Mexico. The reforms unveiled by President Peña Nieto won’t […]

With Reforms on Horizon, Mexico’s Energy Sector Presents Opportunities

Mexico is working to introduce a number of new reforms designed to boost its declining energy industry, and some US firms are set to benefit greatly. A new Merrill Lynch report estimates that in 2012 Mexico spent nearly $8 billion on drilling and completion services, and that the figure should increase to $10.5 billion during the next […]

Emerging Markets: What has Changed

This is what has changed in the EM space, in our view: 1) Thailand:  Officials are stepping up action and rhetoric against THB appreciation 2) India: We are becoming more optimistic that the INR will finally start to recover 3) Mexico: Banxico is sounding dovish again, but caution is needed in interpreting comments 4) Indonesia: […]

Peña Nieto’s Public Security Mirage and The Perils of Diversion

One of the key failures of President Calderon’s efforts against organized crime was the lack of an effective communications strategy. Calderon embarked on a highly complex “war” against organized crime but consistently failed to inform Mexican citizens of the justifications for fighting. When a country goes to war, the government needs to continuously keep the […]

Mexico’s Tax Reform in the Works: Preview and Initial Considerations

After early speculation that President Peña Nieto would unveil his much anticipated tax reform during the 2013 spring congressional session (February 1st – April 30th), Finance Minister Luis Videgaray recently confirmed that the comprehensive tax and expenditure package would not be unveiled until the second half of this year. According to Videgaray and other PRI […]