Organized by North American Forum on Integration (NAFI) Escuela de Graduados en Administracin Pblica y Poltica Pblica del Tecnolgico de Monterrey

(EGAP) Mexican Council on Foreign Relations (COMEXI)

Abstracts
MEXICOS ROLE IN FORGING NORTH AMERICAN ENERGY SECURITY Friday April 2, 2004 Room Continental - 9:00 to 9:30 a.m.
In order to attract the much-needed financial resources to Mexico, its energy resources need to be developed and used in the short-term to meet immediate needs. While respecting the Mexican constitution, could Pemex double its oil production in the coming half-decade and attract private American and Canadian capital to the Mexican oil sector?

Jorge G. CASTAEDA
Former Foreign Minister of Mexico
Jorge G. Castaeda received his B.A. from Princeton University and his Ph.D. in Economic History from the University of Paris. He has been a professor of international affairs at the Universidad Nacional Autnoma de Mxico. Castaeda was one of the principal electoral strategists of the presidential campaign of Vicente Fox Quesada, who won the July 2000 elections. He served as Foreign Minister of Mexico from December 2000 to January 2003. In June 2003, Jorge Castaeda was appointed as a Board Member of Human Rights Watch and International Crisis Group. He is also a member of the United Nations Commission of Private Sector and Development.

ABSTRACT No abstract available at the moment

Abstracts
FINANCIAL MECHANISMS OF THE MEXICAN ENERGY SECTOR Friday April 2, 2004 Room Continental - 9:30 to 10:20 a.m.
What options exist for assuring an increased financing of the Mexican energy sector in the present constitutional context? Various scenarios will be considered. In what way would investment be carried out and managed? What would be the potential return on investment? Would increased financing strengthen North American energy security?

Forging North American Energy Security

CHAIR

Andrs ROZENTAL
President, Mexican Council on International Relations
Andrs Rozental has been a career diplomat for over 35 years, having served Mexico as Deputy Foreign Minister (1988-1994) and as Ambassador to the United Kingdom, Sweden, and the United Nations in Geneva. He also served as Special Presidential Envoy for President Vicente Fox. Ambassador Rozental is currently the Executive Director of an international consulting firm that backs the corporate strategies of international companies in Latin America. He is author of three books on foreign policy in addition to having published numerous articles in specialized journals. Ambassador Rozental is also member of the University Council of the Universidad de las Amricas (Puebla), his alma mater.

SPEAKERS

Jos ALBERRO
Director, Law and Economics Consulting Group (LECG)
Dr. Alberro is a Director with LECG, the global source for expert services. He was PEMEXs chief representative in the NAFTA negotiations between 1990 and 1992 and then Director General of PEMEX Gas and Petrochemicals (PGPB), one of the ten largest companies in Mexico, between 1992 and 1994. Dr. Alberro is a former consultant to the United Nations, has been an arbitrator at the World Banks International Centre for Settlement of Investment Disputes, and has taught economics at universities in the United States, Mexico and the United Kingdom. Dr. Alberros expertise covers economic and financial modeling; analysis and design of public policy and industry deregulation; and analysis of economic, social, and political feasibility of projects.

ABSTRACT How to structure and operate a special trust to fund increased oil and natural gas production and generate the 10 billion dollars a year needed to invest in the human and physical infrastructure Mexicos future demands? Premises: - Mexico has the resource base to increase production; - Mexico has an oil company up to the challenge; - Mexico has a geopolitical and a business interest in strengthening North American Energy Security; - Under appropriate circumstances, Mexicos friends would be willing to help finance this strategy; - Any mechanism has to be transparent and auditable by all stakeholders (Mexican and international alike) This endeavor will require 60-70 billion dollars to be disbursed over a six-year period. There are at least four mechanisms and no magic bullet; the advantages and disadvantages of each have to be analyzed carefully: 1. Normal budgeting resources from the Treasury 2. Project financing in the form of established PIDIREGAS 3. Advanced sales of new production 4. Infrastructure trust funded by development banks (IDB, World Bank, US, Canadian and European governments, etc..) Mexicos good credit rating has to be leveraged to obtain financing with a 15 year horizon and a 5 year grace period, guaranteed by oil export revenues. Such a long term strategic commitment would have significant spillover effects in several industries the least of which would be refining and petrochemicals.

Forging North American Energy Security