Energy is crucial to sustaining economic growth and employment in Mexico.
Today, Mexican energy policy must change, as government officials have to deal with both increasing supplies of oil and gas to satisfy increased domestic demand and with modernizing the industry through the introduction of new technologies and expertise. Large amounts of investments are needed to achieve these objectives. It is neither feasible nor desirable to finance the necessary expansion of the energy sector out of the public finances or through government-backed borrowing. For government to provide the funding, it would be forced to either slash social spending or increase public debt. Demand cannot be satisfied without opening up the state-run energy sector to private investment.