CERAWEEK-Mexico to be rival oil, gas supplier to US -Canada minister

Tue Mar 4, 2014 4:46pm EST
 
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* Mexico's energy reforms a 'bold move' into US, global energy markets

* More competition furthers Canada's push to reach more export markets

By Kristen Hays

HOUSTON, March 4 (Reuters) - Mexico's energy reform initiative will spark competition with Canada in terms of supplying the United States with oil and natural gas, further fueling the major oil producer's efforts to diversify export markets, Canada's minister of natural resources said on Tuesday.

"There's no question that Mexico has embarked on a bold move," Joe Oliver, Canada's natural resources minister, told reporters at the annual IHS CERAweek energy conference in Houston.

"They will emerge as another player. We're focusing on diversifying our market, so that's perhaps yet another reason to do that. Well, in fact it is," he said.

Last December Mexican president Enrique Peña Nieto signed into law a sweeping energy reform that ends the 75-year monopoly state-owned oil company Pemex held on oil and gas production.

Nieto is making the case that Mexico is open for business, underscored by energy reform, the hallmark of his 14-month-old government.

Oil output has been rising in the United States and Canada, but in Mexico production has fallen 25 percent since 2004 despite increased investment.   Continued...