ver the next decade, Mexico's demand for natural gas is expected to increase as industrial markets expand, new electric generating plants are built, and oil-fired electric generating plants are converted to gas in order to satisfy environmental requirements. The need for gas, whether domestically produced or imported, emanates from overall economic development and refinements to the existing fuel mix. The conversion of Mexico's fuel supplies for power generation, recovery of natural gas in Mexico, investment in drilling and production, potential sales of Mexican gas to the United States, and the transport of natural gas from Canada and the United States into Mexico will require new pipelines and distribution facilities as well as new investment in the energy and petroleum area. Mexico's commitment to the privatization and expansion of its energy and environmental sectors present unprecedented opportunities and challenges for foreign technology, businesses, and services in Mexico. The possibilities are palpable, yet uncertainties and risks permeate the atmosphere for the full development of the energy sector, including development involving U.S. companies.
T;?? "Real Deal" in %kxiso
Determining the "real deal" from the theoretically possible one is the puzzle that U.S. companies face when sizing up how much they wish to commit to the energy sector in Mexico. The answers to these questions are not self-evident, despite geographic proximity, existing trade relationships, and NAITAs optimistic assumptions and philosophy. Rather, the answers tend to be shrouded in insecurity when dealing with the political, economic, and cultural backdrop to the energy business in Mexico. This article explores some of the background to energy opportunities in Mexico, as well as a series of other matters that could affect those possibilities.