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When the Mexican energy reform was passed in 2013, the government and industry analysts came out with impressive estimates of how much the reform was going to change the economic growth landscape of the country’s economy. However, a bit over two years since the implementation of the reform there is little to show of these potentially far-ranging benefits to economic activity. To be fair, energy reform is not something that creates immediate results and we were very skeptical then of any important short-term benefits. Furthermore, the energy reform process was started when oil prices were close to $100 dollars per barrel, not the $40 dollars per barrel they are today, which has reduced the incentives for investors and the amount of money available for investment in this industry, not only in Mexico but also worldwide.

 

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