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U.S. ironing out energy sector disputes with Mexico worth $30 billion -ambassador -Breaking


© Reuters. Ken Salazar, U.S. Ambassador to Mexico, gestures at Reuters during an interview in Mexico City (Mexico), June 15, 2022. REUTERS/Edgard Garrido

MEXICO CITY (Reuters] – The United States is working with Mexico to resolve disputes involving American businesses in Mexico’s oil and gas sector. It has a value of more than $30 Billion, according to Wednesday’s statement from the U.S. ambassador.

In an interview with Reuters Ambassador Ken Salazar claimed that the United States was moving forward in resolving issues affecting Mexican businesses. This includes fuel terminal operators to renewable energy generators.

Salazar explained that 17 of these companies were involved in very important disputes with Mexico.

Andres Manuel Obrador of Mexico has been aggressive in redrawing energy sector rules to benefit state oil company Petroleos Mexicanos, (Pemex), and public power utility Comision Federal de Electricidad(CFE). He claims that previous governments have biased the market towards private capital.

However, Mexico’s energy policy has caused friction with other major trading partners and the United States, which in turn has led to ructions among a number of corporate investors.

Salazar stated that some of the projects at issue are moving ahead and that the proof will be in their numbers as to whether or not they can be solved under the current government.

Salazar was a former U.S. secretary for the interior. He did not mention any of these companies.

One of those in Mexico talking is Talos Oil, which Lopez Obrador stated this month that they are close to a deal for a shared crude discovery with Pemex.

Some of the $30 billion was invested in already completed projects, like renewable energy facilities and fuel terminals, but another portion went to pending projects.

Salazar stated that the investments were crucial for North American energy integration and noted that it was vital to create a legal climate in which U.S. companies feel they can “invest safely” in Mexico.

Salazar stated that Mexico understands the importance of North American economies being integrated to foster the exporting of capacity to China, and described these investments as both an opportunity to Mexico and a challenge to Mexico.