|By Marketwired .||
|December 18, 2013 09:15 AM EST|
AUSTIN, TX--(Marketwired - December 18, 2013) - Mexico took a giant leap toward a new economic future last week with Congressional passage of a remarkably bold energy reform bill. Both euphoria and hand wringing ensued as Mexico observers and the Mexican people began contemplating the significance to the country of opening its long-protected oil and gas industry.
These emotional reactions, though deeply felt, will soon subside; giving way to the realization that there's much hard work ahead and that the road to reform is long and potentially strewn with obstacles.
But there's every reason to believe that President Enrique Peña Nieto's administration is attuned to the challenges. After all, there's been quite a lot of discussion -- albeit largely of the academic sort -- about how to revamp the sector. And Mexico surely stands to benefit from the examples of previous reform efforts in the hemisphere and beyond, namely in Brazil, Colombia, Peru and Norway.
The measure that emerged from Congress last week barely resembled the initial, cautious, proposal presented in August by the governing Party of the Institutional Revolution (PRI). That middle-of-the-road effort, which would have introduced profit-sharing agreements, was judged unappealing by the foreign firms whose investment and expertise Mexico's energy sector desperately needs to overcome its woes.
And so a new, more transformative piece of legislation was produced by what is known as "the art of political compromise." It's a craft that has been evident throughout Peña Nieto's first year in office, facilitated by the three-party accord known as the Pact for Mexico. But with the leftist Party of the Democratic Revolution (PRD) unwilling to negotiate meaningful change for the energy sector, the Pact inevitably dissolved. The PRI and the conservative National Action Party (PAN) remained at the bargaining table and together produced a reform more far-reaching than many analysts had thought possible.
The approved legislation reforms Mexico's constitution by ending the oil and electricity monopolies (PEMEX and CFE, the Federal Electricity Commission); allowing private oil companies to explore for and produce oil and gas under a variety of contracts, including services, production or profit-sharing, and licenses; creating a sovereign fund to manage oil revenues; and, revising the nature and governance of the PEMEX board.
It took less than a week for the constitutional changes to be ratified by a majority of state legislatures: 17 of Mexico's 31 states approved the reform within five days of its Congressional passage. Senate recognition of the state actions and the President's signature will soon follow.
The proximate step will be far more challenging: translating constitutional reforms into workable policies. This secondary legislation, also called implementing laws, will stipulate the policy framework and legal processes required to carry out the reform.
These measures are highly anticipated and potentially will set the stage for as much as $20 billion a year in new investment in the sector. They must clarify roles (for all actors in the sector, from private companies and regulators to PEMEX, CFE and other government entities) and establish the mechanisms and procedures by which the country's energy resources will be developed and distributed. Among the details to be addressed are which oil and gas blocs will be developed, when, and under which terms and how costs will be established and recuperated.
Adding to this daunting task is an aggressive time frame stipulated in the reform for developing the follow-on laws and regulations, and pressure from continued political opposition from the left can't be dismissed as a potential complication.
Still, Mexico has taken the crucial first step toward reforming its energy sector. The arduous work of building a framework and policies that can bring Mexico's energy sector into the modern era and enable the country to realize its great economic promise is underway. The excitement of this moment is real, for Mexico and anyone concerned about this hemisphere's future.
Antonio Garza is a former U.S. Ambassador to Mexico, Counsel in the Mexico City office of White & Case and Chairman of Vianovo Ventures. He can be found online at www.tonygarza.com and on Twitter, @aogarza.
The following files are available for download:
Media Contact for Ambassador Antonio Garza (Ret.):
Jennifer Waisath Harris
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Dec. 10, 2016 11:45 PM EST Reads: 1,795
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 11:15 PM EST Reads: 1,218
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Dec. 10, 2016 10:15 PM EST Reads: 2,072
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 09:15 PM EST Reads: 1,354
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 10, 2016 07:30 PM EST Reads: 1,820
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Dec. 10, 2016 07:00 PM EST Reads: 4,156
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 10, 2016 06:45 PM EST Reads: 1,105
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Dec. 10, 2016 06:30 PM EST Reads: 1,035
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 10, 2016 06:30 PM EST Reads: 1,972
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 10, 2016 06:30 PM EST Reads: 1,551
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 10, 2016 06:15 PM EST Reads: 1,098
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 05:30 PM EST Reads: 1,012
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Dec. 10, 2016 05:15 PM EST Reads: 2,384
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 10, 2016 05:15 PM EST Reads: 1,427
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Dec. 10, 2016 04:30 PM EST Reads: 1,375