Abstract
In 2014, the Mexican government approved a bold energy reform that allows private energy companies to freely participate in the energy market (something prohibited during the previous eight decades). This reform is expected to significantly restructure the energy sector and boost and diversify the energy production. Moreover, changes in the energy sector and production might lead to structural changes in the rest of the economy and ultimately generate significant economic benefits for the country. Nevertheless, the fundamental role of the energy sector in this oil producing country makes the potential impacts of the reform complex to forecast. The objective of the study is to analyze the current state, evolution, and driving factors of the total primary energy use in Mexico in 2003–2012 (prior to the implementation of the reform) as a precedent for future analyses of impacts of the energy reform. The results show three driving factors of the evolution of primary energy use: final non-energy demand, direct energy intensity, and economic structure. Also, it was found that the energy sector has been in a precarious situation regarding its structure and efficiency. However, this situation had a small effect on the evolution of primary energy use.
Highlights
The bold energy reform that the Mexican government approved in 2014 represents one of the most significant regulation changes to the energy sector in the last eight decades [1]
The present study is based on the methodology of energy input-output analysis (EIO analysis), which is designed to account for the energy flows in the economy [59,60,61]
In combination with structural decomposition analysis, the model allows the evolution of primary energy use to be evaluated, separately accounting for the effect of several factors on changes in primary energy use
Summary
The bold energy reform that the Mexican government approved in 2014 represents one of the most significant regulation changes to the energy sector in the last eight decades [1]. Before this reform, the processes of national energy resource exploitation and power generation were controlled by the state. With the energy reform, all processes of energy exploitation and generation are opened to private companies (national and foreign). The reform changes the scope of state-owned companies and creates new regulatory agencies, while reorganizing existing ones. It is expected that the proposed regulation will significantly affect the structure of the energy sector and the characteristics of energy use and production in the country [2,3].
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