The Demand for Energy – Environmental Law, Mexico

The demand for energy has become a topic of great interest to everyone especially when we talk about sustainability, use and efficiency. Such a demand has been increasing day after day, and even if we are able to improve the energy efficiency, the global demand will double by 2050. This brings about diverse consequences such as the extinction of non-renewable natural resources used for energy production, for instance: liquefied petroleum gas, diesel, natural gas, electricity, fossil fuels, among others. In addition, there is the increase in greenhouse gas emissions and as a result Climate Change.

The energy has become one of the most important aspects of the agenda of several countries such as Japan, Russia and Germany. In Mexico, there have been attempts to set up specific activities in order to implement the necessary changes through strategies for the improvement of the energy sector. Some of these strategies are for example the phasing out of fossil fuels and its substitution by natural gas, and the approval of the General Law of Climate Change whose objective is to create a juridical framework concerning Climate Change, establishing the faculties of the levels of government and the public policies in mitigation and adaptation, the regulation of greenhouse gas emissions, and at the same time promote a transition towards an economy that is competitive, sustainable and low in carbon emissions.

In addition, if the above is coupled with rhetorical speeches related with the country’s sovereignty and with positions that prevent effective investments in the sector, without an unfolding of all the fiscal, legal, bureaucratic and syndical obstacles, what remains is not really a challenge, but a task to verify.

One of the events of great interest over the past few years has been the energetic reform, which is found within the expectations regarding actions that must take place on behalf of the State. In any way, what is sought is to be able to place Mexico as a competitive country in the international scene with regards to energetic industries, especially in the petroleum sector. 

The energetic reform is considered of great importance, especially if we take into account that energy consumption in Mexico is divided in the following manner: 90% of the energy comes from hydrocarbons, 62% comes from oil, and 28% from gas. With regards to the consumption of petroleum, between 2000 and 2004, production increased until it reached its peak level, and it began to decline until it reached 2.5 millions of barrels per day (MBD) in 2012. These figures reflect how important it is for us to focus on the development of juridical regulations and the application of public policies in the energy sector. However, we must also take into account the crisis that we are encountering little by little, in which the supply of non-renewable natural resources used in the production and consumption of energy is constantly shrinking.

It is vital to be aware of the lack of technology and equipment that is employed for the production, processing and consumption of energy, since most of it comes from foreign countries and leaves Mexico at a disadvantage in international competition. “There are very few examples of equipments that have the greatest market share and that are a product of our own scientific and technological progress, or our own patents.”

Moreover, predictions towards 2020, concerning both production and consumption of energy in our country, present Mexico as a country with a structural deficit. In addition, by the year 2030, the demand for global energy will be almost 35% greater than it was in 2005. 

With the above in mind, the Pact for Mexico could be considered a trigger of certain guidelines to achieve specific actions, the majority of these related with the energetic reform, which will have as a goal, to improve the conditions concerning the use of energy in our country. Some of the commitments that are established in the Pact are: to continue to maintain the hydrocarbons as property of the Nation, seeking energetic efficiency and the improvement of everything that comes with it, there is also the transformation of PEMEX, seeking to expand its capacity of execution pertaining the exploration and production of carbides. As a consequence of the great dependency that we have with regards to fossil fuels, we have had to invest in research and development of energy projects that come from renewable sources, such as solar and wind energy. Mexico has a great potential when it comes to solar energy, “it is one of the highest in the world, approximately three quarters of the national territory are areas with an average incoming solar radiation of 5KW/hm2 per day.” With regards to wind energy, estimates show that it can be greater than 5,000 MW economically usable in identified zones, such as south of the Itsmo de Tehuantepec; the Baja California and Yucatan peninsulas, and the central region of Zacatecas among others. 

The investments that take place over the next 10 to 20 years will be of great importance and will have big and deep effects in energy, and as a result in the climate over the second half of this century and over the next one. The actions sustained over the long-term will result in a lower cost compared to the risks that will entail if we decide to sustain the inaction. The cost that we must pay is and will be reflected in aspects that we would never be able to visualize whether these are economic, social, environmental, or political. We must remember that “humanity has not created the web of life. We are merely a strand within it. What we do to the web, we do to ourselves. Everything is united. Everything is connected.”

We would like to thank María Matilde Flores Ruiz for her collaboration in the translation of this document . 

The views expressed in this article reflect only the opinion of the members of the firm. For more information about this please contact:
Mrs. Regina Gallegos [email protected]
and Mr. Daniel Basurto [email protected]