Mexico"s oil policy shifts amid rising U.S. economic nationalism
- The U.S. economic nationalism has led to a resurgence of resource nationalism in countries like Mexico.
- President Lopez Obrador's government has rewritten oil concessions and invested heavily in state-owned Pemex, including a costly refinery project.
- This trend towards nationalism may result in significant economic losses for the energy sector, with minimal benefits.
The rise of economic nationalism, particularly in the U.S., has influenced oil policies in countries like Mexico. Under President Lopez Obrador, Mexico has adopted a resource nationalist approach, revising oil concessions and investing heavily in Pemex, including a $17 billion refinery project that remains underutilized. This shift mirrors historical trends where political ideologies have driven resource management, often leading to economic inefficiencies. The opposition to foreign investment, fueled by fears of losing control over domestic resources, has been exacerbated by public sentiment against practices like fracking, despite potential economic benefits. As nations increasingly embrace protectionist measures, the implications for energy sectors are significant, with potential economic losses outweighing the perceived benefits of nationalism.