Following Legal Changes for the Energy Sector, Prudence Is Paramount

Energy & Natural Resources attorney Gabriel Ruiz was featured in an article in Global Energy magazine analyzing new energy laws and reforms in Mexico. Through these new regulations, the government seeks to strengthen the state-owned companies Federal Electricity Commission (CFE) and Mexican Oil Company (Pemex), promote national energy security and drive the energy transition. Mr. Ruiz highlighted some of the most significant changes: The Electric Sector Law replaces the Electric Industry Law, and the Hydrocarbons Sector Law establishes that the Secretary of Energy will grant allocations to Pemex in certain modalities. He also describes the challenges that accompany these reforms, including the effects of Pemex's restructuring, the need to increase oil production for the development of hydrocarbon, gas and energy projects, and the importance of maintaining judicial certainty to allow for increased investment.

"At the end of the day, companies are going to look for a return on their investments and are going to want to make them under a secure judicial framework and a state of reliable law," he commented.

READ: Following Legal Changes for the Energy Sector, Prudence Is Paramount (Article begins on page 40)