Liberalization of the natural gas industry is complex because the sector combines activities with natural monopoly characteristics with activities that are potentially competitive. The challenges are compounded when the state opts to retain vertically integrated monopolies in otherwise contestable segments of the industry. Regulatory issues associated with partial liberalization of natural gas markets are analyzed through a case study of Mexico.
The blowout of the Macondo well on April 20, 2010, led to enormous consequences for the individuals involved in the drilling operations, and for their families. Eleven workers on the Deepwater Horizon drilling rig lost their lives and 16 others were seriously injured. There were also enormous consequences for the companies involved in the drilling operations, to the Gulf of Mexico environment, and to the economy of the region and beyond. The flow continued for nearly 3 months before the well could be completely killed, during which time, nearly 5 million barrels of oil spilled into the gulf. Macondo Well-Deepwater Horizon Blowout examines the causes of the blowout and provides a series of recommendations, for both the oil and gas industry and government regulators, intended to reduce the likelihood and impact of any future losses of well control during offshore drilling. According to this report, companies involved in offshore drilling should take a "system safety" approach to anticipating and managing possible dangers at every level of operation-from ensuring the integrity of wells to designing blowout preventers that function under all foreseeable conditions-in order to reduce the risk of another accident as catastrophic as the Deepwater Horizon explosion and oil spill. In addition, an enhanced regulatory approach should combine strong industry safety goals with mandatory oversight at critical points during drilling operations. Macondo Well-Deepwater Horizon Blowout discusses ultimate responsibility and accountability for well integrity and safety of offshore equipment, formal system safety education and training of personnel engaged in offshore drilling, and guidelines that should be established so that well designs incorporate protection against the various credible risks associated with the drilling and abandonment process. This book will be of interest to professionals in the oil and gas industry, government decision makers, environmental advocacy groups, and others who seek an understanding of the processes involved in order to ensure safety in undertakings of this nature.
This comprehensive review of Mexican regulatory policy outlines progress made by Mexico since the 1999 review conducted by the OECD, and makes recommendations for further reforms aimed at promoting investment and boosting productivity and ...
Mexico has large extractive industries and it traditionally has raised sizable fiscal revenues from the oil and gas sector. A confluence of factors—elevated commodity prices, financial challenges of the state-owned oil company Pemex, and revenue needs for financing social and public investment spending over the medium term—suggest that a review of Mexico’s taxation regimes for natural resources would be opportune, against the backdrop of a comprehensive approach to tackling Mexico’s challenges. This paper identifies opportunities for redesigning mining taxation to increase somewhat the revenue intake while maintaining the favorable investment profile of the sector. It also discusses recent reforms to the oil and gas fiscal regime and future reform considerations, with attention to the attractiveness of investment on commercial terms—an issue that should be placed in the context of an overall reform of Pemex’s business strategy and possibly of the energy sector more generally.
Regulators help ensure the access to and quality of public utilities, facilitate investment and protect market neutrality. Good external and internal governance of regulators is crucial to their performance. Based on a framework developed by the OECD, this study assesses the functions ...
Recent years have seen a major growth in the European law concerning the operation of the energy industry, especially with respect to electricity and gas. Several directives have been adopted that are aimed at the promotion of competition in this key sector of the European economy. At thesame time, the jurisprudence of the European Court had developed further on matters such as access to networks, import and export monopolies and security of supply.In this book the authors examine the principal legislation, Treaty provisions and decisions of the Court of Justice and Court of First Instance of the EU as they related to the promotion of competition in European energy markets. In particular, two chapters are devoted to a detailed analysis of theprovisions of the two directives that set out common rules for the creation of an internal market in the electricity and gas sectors. In each case, the analysis is set in the context of the various programmes of energy market liberalization and privatization in the Member States, which aresummarized in this book. However, the authors also take the wider pan-European context into account, explaining the requirements and the implications of the European Economic Area Agreement, the Energy Charter Treaty and the Europe Agreements with countries of Central and Eastern Europe.The approach adopted by the authors is both analytical and historical. They locate the legislation in the context of the EU Internal Market programme that began in the late 1980s and explain the roles played by the various parties (energy industries, consumers and EU institutions) in shaping thefinal legislation. Importantly, they explain how the framework character of the energy directives has led to further important rule-making in the implementation of the directives across the EU. They conclude that a co-ordinated response between the European Commission and the national regulatorswill be essential to resolve problems arising in the transition to a competitive energy market in the EU.
This book investigates the overall natural gas reform performance of Turkey, addressing both shortfalls and setbacks that have prevented Turkey from the fulfillment of the regulatory implementation since 2001, and how the prospectively liberalised natural gas market can effectively operate at all levels. Although eighteen years have passed since the introduction of the first legislation as a basis for a more liberalised Turkish natural gas market, the completion of the reform process still suffers from a lack of enforcement. The book offers recommendations to address this, the main one being that policy makers should give due consideration to the consolidation of EMRA’s independent role with appropriate safeguards laid out to prevent attempts of regulatory misuse. The book concludes by suggesting that there is a compelling need to move forward with a consolidated reform sooner rather than later if Turkey genuinely wishes to take a leadership position in the race to become an efficient gas hub and be part of Europe’s single energy market.
The differences between the United States and Mexico may be immense, but their links—economic, political, and social—are profound, and growing stronger. In this incisive narrative, John Adams argues that Mexico, with which the United States shares a 1,951 mile border, is no sideshow but a pivotal component of American economic health and regional security. The primary theme that runs throughout this book is that Mexico has historically had, and will continue to e Drawing from the most current economic and demographic data and business examples, Adams demonstrates the depth and breadth of U.S.-Mexican relations, and their implications for American business and policymaking. In the process, he dispels popular myths about Mexico as an economic backwater or political distraction. The result is an authoritative and colorful account of our complex relationship with our neighbor to the south, and its broader implications for global growth and political stability. The border between the United States and Mexico runs for 1,951 miles. The differences between the two nations may be immense, but their links—economic, political, and social—are profound, and growing stronger. In this incisive narrative, John Adams argues that Mexico is no sideshow, but a pivotal component of American economic health and regional security. The primary theme that runs throughout the book is that Mexico—its domestic growth and industrial capacity, population pressures, energy needs, political dynamics, and strategic location—has historically had, and will continue to have, a tremendous impact on the United States. Drawing from the most current economic and demographic data and business examples, Adams demonstrates the depth and breadth of U.S.-Mexican relations and their implications for American business and policymaking. A unique aspect of the book is his analysis of the competition between Mexico and China for American resources for investment, trade, and economic development. Adams also dispels popular myths about Mexico as an economic backwater or political distraction. The result is an authoritative and colorful account of our complex relationship with our neighbor to the south—and its broader implications for global economic growth and political stability.
