Mexican energy policy reform is affecting the Texas oil and gas industry
Gov. Greg Abbott asked Mexican President Andres Manuel Lopez-Obrador to end a political stalemate that has left at least $3 billion of payments and contracts for several natural gas pipelines in limbo.
"Mexico in 2013 basically opened up its energy sector to private participation," said Guillermo Garcia Sanchez, professor of law and energy expert at Texas A&M University School of Law. "Suddenly, contractors in the U.S. could come do business in Mexico."
And they did. However, under the recent change in the Mexican administration, renegotiations are occurring, leading to this problem of payment to many Texas businesses.
Garcia Sanchez explains how this process is affecting the oil and gas industry across the U.S. and especially in Texas. See the video player above for the full conversation.