ABSTRACT
This chapter describes the Mexican energy system, projected future energy demand, and institutional changes to increase investment. Mexico sent heavy crude oil to a PEMEX-Shell jointly owned refinery in Texas, where it was transformed into gasoline and returned to Mexico, providing almost 20 percent of Mexico's gasoline. The existing dual power capacity, plants that burn fuel oil and coal, in 2001 began a conversion program from fuel oil to imported coal as a consequence of the energy and environmental policies. Mexico is becoming increasingly dependent on outside sources for the satisfaction of its energy needs for oil products, liquefied petroleum gas (LPG) and natural gas, petrochemicals. Government energy policy reflects projections about the nation's economic needs, the assessment of geological petroleum and gas reserves, and the availability of investment, technology, and manpower. The Mexican total trade balance in hydrocarbons is positive; however the net imports of oil products, LPG, and natural gas has increased.
