Four Risks for Companies in Energy Reform

The recent Forbes article4 riesgos para las empresas en la reforma energética’ (4 Risks for Companies in the Energy Reform), highlights underlying business challenges for international companies considering participation in the Mexico oil market.

  1. Regulatory and legal framework
  2. Opposition to public reform
  3. Lack of infrastructure and local talent
  4. Security challenges of corruption and drug cartels

The business decision to enter the market offers great potential and many unknowns. The Mexican government, industry, and the population are all working to learn and adapt to the changes, while simultaneously protecting their interests.

Butchko, Inc. believes that a thorough plan for country entry and operations in such an environment is critical, as the groundwork established and initial impressions will set the tone for long-term success or challenge. Building and safeguarding the business and physical infrastructure includes solid plans and resilient operations tools (persons, procedures, and technologies) that are comprehensive, robust, and adaptable to the dynamic and risky environment. Laying the groundwork ahead of time and getting ahead of cultural, technical, and security issues is a fundamental means to maximizing success and minimizing risk.