ABSTRACT
Mexico has inaugurated a new president, Miguel de la Madrid Hurtado, who took office in December 1982 and introduced an austerity program. Like the rest of the world, Mexico has suffered from spiraling inflation and the consequences of global recession. When development and exploitation of Mexico's oil resources expanded rapidly in the 1970s, Mexico was frequently called the new Saudi Arabia. Rapid expansion of oil output can lead to the accumulation of foreign debt to finance that expansion, which is exactly the problem confronting Mexico. Mexico's energy policy guidelines appear to concentrate on diversification, expanded processing capabilities in petroleum, greater efficiency in domestic consumption, and stability in pricing. Increased efficiency of energy consumption is being sought not only on economic grounds to prolong the life of Mexico's hydrocarbon reserves but also because of environmental concerns. The country has substantial potential in hydroelectric power, geothermal energy, and, to a lesser extent, in coal.
