NAFI Final Report 2004

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    April 1-2, 2004Monterrey (Mexico)

    Final Report

    Conference organized by :

    North American Forum on Integration

    Escuela de Graduados en Administracin Publica y de Poltica Pblicade lInstituto Tecnolgico y de Estudios Superiores de Monterrey

    Consejo Mexicano de Asuntos Internacionales

    Montral, June 2004

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    Except where mentioned, all the authors quoted in this report presentedthe opinions and data cited at the conference "Forging North AmericanEnergy Security" held in Monterrey on April 1-2, 2004. The reader whowants to know some more about their origin and the title of the workshopwhere they made their presentation will find this information in the

    Appendix 3.

    North American Forum on Integration4519, rue Saint- DenisMontral (Qubec)Canada, H2J 2L4Tlphone : 1 (514) 844-8030Fax : 1 (514) [email protected]

    Escuela de Graduados en Administracin Pblica y Poltica PblicaEugenio Garza Sada 2501

    CP 64849Monterrey NL. MxicoTlphone : 01 (81) 8158-2218Fax: 01 (81) [email protected]/egap

    Consejo Mexicano de Asuntos Internacionales, A.C.Campos Eliseos No. 345, Piso 6, Polanco, Mxico, D.F., 11560 Tlphone : (52-55) 5279-60-87/88Fax : (52-55) [email protected]

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    mailto:[email protected]:[email protected]
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    Table of Contents

    I- INTRODUCTION.........................................................................................4

    The Objectives of the Conference ................................................................................. 5

    II- NORTH AMERICAN ENERGY DYNAMICS .................................................... 5

    Some Historical Milestones .......................................................................................... 5Joined Strengths............................................................................................................ 7Uniting Initiative and Power in Mexico ....................................................................... 8

    An unfulfilled demand................................................................................................. 10The Price of Energy......................................................................................................11

    III- CONSOLIDATE NETWORKS AND DIALOGUE...........................................11

    Oil, Gas and Electricity Markets .................................................................................12Expand Integration?....................................................................................................13Federalism and Integration.........................................................................................14

    IV CURBING DEMAND: A STEP TOWARD SECURITY....................................15

    Energy Efficiency, an Inexhaustible Resource............................................................15The Challenges of Using Clean Energy Sources..........................................................16The Integrated Market for Tradable Renewable Energy Certificates........................17

    V Taking Advantage of Resources...............................................................18

    Mexico, a Crucial Contributor.....................................................................................18The North American Energy Fund..............................................................................18The North American Development Fund...................................................................20

    VI - Conclusion ............................................................................................21

    ANNEX I - STATISTICS ................................................................................. 23

    ANNEX II LIST OF SPONSORS .................................................................... 26

    ANNEX III LIST OF SPEAKERS BY WORKSHOPS.......................................... 27

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    Final Report

    Forging North American Energy Security

    Monterrey (Mexico), April 1-2, 2004


    The North American Forum on Integration (NAFI)1 became associated in 2004 withtwo internationally renowned institutions: the Escuela de Graduados en AdministracinPblica y de Poltica Pblica (EGAP) from the Instituto Tecnolgico y de EstudiosSuperiores de Monterrey (ITESM)2 and the Consejo Mexicano de Asuntos Internacionales(COMEXI)3, in order to organize a conference on a matter of interest at the forefrontof North American current events: energy security.

    Entitled Forging North American Energy Security, this conference took place on April 1-2, 2004, and brought together more than 210 people from political, economic andacademic backgrounds from Mexico, the United States and Canada.

    Many events contributed to placing this issue into the forefront during the monthspreceding the conference: the major electrical blackout that affected the AmericanNortheast and Ontario, political tensions in the Middle East, the volatility of oil andnatural gas prices, fear of terrorist attacks on energy infrastructures as well asfruitless attempts to reform the Mexican energy sector.

    The issue addressed was a natural progression from the NAFI conference which took

    place in Montreal in March 2003 with the theme: Beyond NAFTA: Strengthening NorthAmerica. That conference stirred interest in creating a North American investmentfund, as proposed by the Mexican President Vicente Fox and inspired by the Europeancohesion funds.

    Among the recommendations put forward during this event was the idea that theenergy sector could serve as a springboard to implement a North Americaninvestment fund. It was also suggested that Mexico take advantage of its energyresources to attract foreign investors in order to finance an increase in Mexicanenergy production and therefore increase North American energy exports, reinforcingenergy security in the region.

    1 The North American Forum on Integration (NAFI) is a non-profit organization founded in 2002 and based inMontreal. It aims to spread knowledge through organizing conferences alternating between three countries, on issuesraised by North American integration and to attract the attention of decision-makers on the importance of challengesto overcome.2 EGAPs mission is to train people in ethics who exercise visionary leadership at the heart of their community in orderto promote the economic, political, entrepreneurial and social well-being of their country.3 COMEXI is an open, autonomous and pluralistic forum which has the objective of promoting independent analysesof future possibilities, international tendencies and their impact on Mexico, as well as their influence on the world.

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    The Objectives of the Conference

    The conferences principal objective was to identify strategies which would allow foran increase in North American energy security. The conferences program worked outby NAFI was thus organized around a spectrum of measures central to North

    American energy security:

    The reliability and physical integrity of North American power supply grids; Supply of energy at a stable and competitive price; Growth of energy autonomy through increasing North American power

    supply and energy efficiency; The development of interconnections between power grids in the three

    countries; Diversification of energy supply sources, notably by the increased use of

    renewable energies; Improvement in the efficiency of how different levels of government interact

    on issues concerning energy development;

    Respect for strict environmental standards concerning energy development.

    These elements contribute to an increase in energy security, each in their own way,since they increase:

    our level of energy reliability; our energy competitiveness; our energy autonomy;

    or, since they reduce:

    energy use; our dependence on one form of energy in particular; environmental risks associated with energy.

    Alone, each of these measures has a limited impact on energy security. Appliedtogether, they will multiply end results by affecting both the supply and demand forenergy.

    This also applies to the geographical impact of these measures. Of course, each ofthese initiatives can be implemented on a national level, but adopting a common planof action between countries would allow us to gain from our respective strengths andtherefore, better respond to our particular needs, while increasing the global impactof the measures put into action.


    Some Historical Milestones

    It is chapter six of NAFTA which addresses energy. There, it is stipulated thatpetrochemical and energy commodity businesses are subjected to treaty rules between

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    the three parties. However, Mexico benefits from an exemption which concerns theliberalization of the energy market since according to Article 27 of the MexicanConstitution, exploration, development, refining, distribution and transport of oiland natural gas as well as the supply of electricity are all activities reserved for theState. The State also holds a property monopoly on all hydrocarbon reserves,preventing any foreign-interest participation in the primary sector of the oil industry,

    since the domestication of oil in Mexico in 1938.

    In February 2001, Presidents George W. Bush and Vicente Fox met in Guanajuato inorder to discuss, among many subjects, the future of energy resources in the regionand to reinforce North American energy security. At the time of the meeting, thematter of developing, in cooperation with Canada, a North American approach to theissue of energy resources was raised. Also, Guanajuato put forward the idea ofconsolidating the regional economic community and by doing so; the benefits reapedwould spread to less developed regions.

    Two months later, the Summit of the Americas took place in Quebec City and the

    partners in NAFTA agreed to create the North American Energy Working Group(NAEWG), lead by energy ministers in the three countries and made up of manygroups of experts in the fields of energy efficiency, electricity, natural gas, energy dataas well as science and technology. An ad hoc forum was also implemented in order todiscuss infrastructure protection. Each committee of experts consists ofrepresentatives from Natural Resources Canada, and Mexican and AmericanSecretaries of Energy. This working group has the objective of encouragingcooperation at the heart of the energy sector on a North American scale. NaturalResources Canada described NAEWGs mandate as:

    The goals of the NAEWG are to foster communication and cooperationamong the governments and energy sectors of the three countries on energy-

    related matters of common interest, and to enhance North American energytrade and interconnections consistent with the goal of sustainabledevelopment, for the benefit of all. This cooperative process fully respects thedomestic policies, divisions of jurisdictional authority and existing tradeobligations of each country.4

    Since then, another working group, this one binational, was created by Canada andthe United States following the major electrical blackout which paralyzed the

    American Northeast and Ontario in August 2003. The Canadian-American workinggroup on the blackout issue was put into action in order to investigate its causes andlook into ways of avoiding such a situation in the future. Chaired by the Minister ofNatural Resources from Canada and the American Secretary of Energy, it is made up

    of three sub-working groups with mandates on electricity, nuclear energy andsecurity. Representatives from the states and provinces of each country, federal civilservants as well as contractors formed these sub-groups. A final report on the causesof the blackout was released in April 2004. It contained many suggestions on how toavoid another blackout like the one which took place in August 2003.5

    4 Taken from the Natural Resources Canada web site: It is possible to obtain a copy of the report on the Natural Resources Canada web

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    Joined Strengths

    Lourdes Melgar, Ph.D., an independent consultant for the energy sector 6, presented astudy prepared in the context of the conference, presenting points of convergenceand divergence between North American partners in regards to energy security whichform the basis of a trilateral vision.7

    From the very beginning, the study has shown that, all at once, there are differentnational stances regarding the concept of energy security and the compatibility ofNorth American partners assets. For Mexicans, energy security overlaps with theconcept of national sovereignty but also raises the necessity, in a constitutionalcontext, of finding sufficient financial resources to answer the increasing demand forenergy. Close to 40% of State revenues come from the oil sector, and in consequence,the stability of the economy depends largely on this sector.

    For Americans, energy security and national security are directly related. There is adecrease in domestic production, an increase in demand and heightening tensions inthe Middle East. This means that there is a strong will to depend less on oil coming

    from unstable regions.

    In international markets, Abraham said, the Bush administration is movingin a new direction by building a stronger partnership with Canada andMexico. A major undertaking in this area, the North American EnergyInitiative, aims at developing policies to enhance energy security, trade andinterconnections between the three countries, he said.8

    For Canadians, energy security involves the hope for reliable supply which respectsthe environment while generating sustained development.

    No matter what point of view is taken, it appears that North American energy

    security is a sector where everyones interests join and our strengths can worktogether. In fact, Mexico and Canada are two stable allies possessing importantreserves with the capability of responding to the increasing energy needs in theUnited States. As for Mexico, this country is faced with chronic under-funding in theenergy sector, which is threatening in the mid term the significance of itscontribution to the North American energy solution. On that subject, we see that afinancing mechanism founded on private and/or public investments coming from theUnited States and Canada would jump-start the oil and gas sector in Mexico. Finally,Canadian apprehensions linked with the reliability of power supply grids andenvironmental protection may only be resolved in a strategic context which reachesbeyond Canadian borders.

    6 Ms. Melgar was Director General International Relations for the Secretary of Energy of Mexico. She acted as leaderfor the Mexican delegation to the NAEWG.7 Melgar, Lourdes. Energy Security: A North American Approach. A study presented at the conference: Forging North

    American Energy. April 1 2004. Monterrey. 20 pages.

    8 Taken from: Oil Dependency a Major Concern, Energy's Abraham Says. June 20, 2002, from the web

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    Each country has its own idea of what energy security involves; Our visions are compatible and our comparative advantages work together; North American energy security is a sector where an interest in cooperation and

    coordination is of paramount importance for each of the three countries. A trilateral strategy aiming for energy security would allow national objectives

    about energy security to be attained in an accelerated manner.

    Uniting Initiative and Power in Mexico

    The energy issue in Mexico is a State affair. In fact, as stipulated in the Constitution,only the State is in a position to develop, distribute, and supply energy whether it iselectricity, natural gas or especially oil. For the last few years, the demand forelectricity has climbed at such a rate that the two main suppliers: the Comisin Federalde Electricidad (CFE) and the Luz y Fuerza del Centro (LFC) have not been able to keep

    up. These suppliers are the main buyer of natural gas in the country.

    The demand for electricity increases 5.4% annually, and this rhythm will continue inthe years to come, according to Cintia Angulo de Leseigneur, Director General oflectricit de France in Mexico. This increase produces considerably high pressure onenergy supply rates, particularly in the natural gas sector, and this is interferingnegatively with national economic growth.

    The Wood Mackenzie study9, presented at the conference, indicates that theindustrial sector and the electricity generation sector account for 80% of the demandof natural gas in Mexico. Also, the Mexican industrial sector has difficulty beinginternationally competitive given the large variations in the price of natural gas which

    equally affect the price of electricity on a national scale. The President of the Chamberof Manufacturing Industry of Nuevo Len, Jos de Jess Valdez Simancas states thatMexican industries have experienced a 2% loss over the last 3 years. The slowing ofthe American economy and the breakthrough made by the Chinese economy are partof the reason for the loss, as well as an increase in the cost of energy which has had adirect impact on industry production costs. It reminds us that North America is thepart of the world where the price of natural gas is the highest.

    However, a slowing down in Mexicos demand for energy is not expected in the nextfew years. Indeed, Ubaldo Incln, Director of Renewable Energy and the Environmentat SENER states that, in regard to electrical power development, Mexico has not yetdeveloped all of its territory, particularly the southern states. Presently, between 87%and 90% of the population has access to electricity10. In rural zones, an average of85% of the population has access to electricity. In rural zones with a mostlyindigenous population, only 64% have access. Rural electrification is the CFEsresponsibility, but the State does not have the financial means necessary to developthese infrastructures. One of the solutions proposed by Ubaldo Incln is to call on

    9 Wood Mackenzie.Mexico in the North American Context: A Critical Contributor to the Energy Balance . Study presented atthe conference: Forging North American Energy Security. April 1-2, 2004.10 Ubaldo Incln, conference: Forging North American Energy Security. Monterrey, April 2, 2004.

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    certain international programs to subsidize electrification projects in marginalizedzones.

    Presently, Mexico needs 4 854 million f3 of natural gas11 and, unable to respond tothis demand, Mexico is importing 750 millions f3 every day from the United States,the equivalent of close to 25% of its total consumption.12

    To respond to an increasing demand for energy, Mexico should increase its electricityproduction 56% by 2012. In fact, as confirmed by Wood Mackenzie, the demand fornatural gas in Mexico increased 8% in 2003 and will reach 4.5 billion f3/ day in 2010.

    In order to respond to such a demand, a massive investment must be made into theexploration and development of natural gas and oil. To this effect, the MexicanSecretary of Energy Felipe Caldern Hinojosa underlines the fact that the Mexicanelectrical power sector needs an investment in the order of $50 billion US over 10years and $115 billion US in the hydrocarbon sector over the next 9 years.

    Lourdes Melgar estimates that a $140 billion US investment in the Mexican energysector will be necessary until 2010, from which $50 billion should be invested in oildevelopment and exploration.

    Currently, the State does not have the financial means to invest such amounts intoenergy infrastructures. Mexico is suffering from significant under-funding in theenergy sector which prevents it from taking care of its own energy needs andsupporting economic growth.

    During the 2002 Presidential election, Vicente Fox committed himself to makingreforms, first of all in the electrical power sector and then in the natural gas sector inorder to make the energy sector more competitive. Since then, slight reforms have

    allowed for private sector participation in the distribution of electricity13

    as well as innatural gas, through multiple service contracts (MSC)14. However, these reformsstopped short of resolving the energy sectors problems in terms of investments.

    According to Cintia Angulo de Leseigneur, 24% of the electricity produced in Mexicocomes from private companies, of which 13% are independent producers of electricity(IPE). The latter have established 25-year contracts with the CFE. Most of the IPEs areEuropean companies who, according to Angulo, are faced with significant risksstemming from:

    1) a weak infrastructure;2) economically- and politically-sensitive funding;3) the discretionary risks of doing business with a lone buyer.

    11 Enrique Velasco Ibarra, conference: Forging North American Energy Security. Monterrey, April 1, 2004.12 Dr Jos Luis Alberro, conference: Forging North American Energy Security. Monterrey, April 1, 2004.13 NAFTA allows certain independent electric power production companies (IPE) to conduct business in Mexico; theirproduction is sold to the Comisin Federal de Electricidad(CFE) which has a monopoly over consumer distribution.14 Multiple service contracts are awarded by a subsidary of Pemex to foreign companies in order to permit them toexplore and develop natural gas in the Burgos Basin.

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    In the natural gas sector, the CSM option allows private companies to build andoperate energy infrastructures in Mexico in order to increase natural gas production.In their 2002 Strategic Plan, Pemex estimated that they would be able to increaseunrefined natural gas production to 4.4 billion f3/ day in 2002 to 8 billion f3/ day in2008, an overshot estimate according to Wood Mackenzie. In fact, after the firstround of multiple service contracts came to term, actual production was only 50% of

    what had been expected by the State.

    Are calls for more significant reforms to the energy sector being heard by the Mexicanpolitical community? The President of the Energy Commission from the MexicanChamber of Deputies Francisco Salazar Diez de Sollano, responds to the question bysaying that politicians agree that they must reform the electric power sector, andmore especially, the energy sector. But there are two different approaches which haveemerged in national politics in regards to these reforms. The first approach supportsmaintaining the organizational status quo with funding going to projects forinfrastructure through pidiregas15, whereas the second approach recommendsprivatization. Also, a reform of the electric power sector has been implemented in the

    first place in order to increase competition in this sector. This should be followed byreforming the natural gas sector, a reform which is still in its beginnings. The presentpolitical situation and partisan tensions account for the slowness of the reformprocess, either in its conceptualisation or its application. Deputy Salazar Diez deSollan hopes that a more active role will be played by the Mexican people.

    An unfulfilled demand

    In regard to consumption, the United States and Canada follow the same trend astheir neighbour to the south. In the United States, energy demand has not stoppedincreasing, even though on a global scale this country is already the one which usesthe most energy. The result: North America is the region with the highest rate ofenergy intensity16 in the world.

    According to Dr. Jos Luis Alberro, oil demand in the United States will reach 3.6million barrels/ day during the next decade. The United States already imports twiceas much energy as it did ten years ago. 36% of these imports come from Mexico andCanada. In 2003, the 2nd and 3rd place oil suppliers to the United States were Mexicoand Canada, respectively, the first place being occupied by Saudi Arabia.

    Parallel to oil demand, the demand for natural gas has not stopped increasing in theUnited States, according Charles Matthews, commissioner for the RailroadCommission of Texas.To this day, American demand has been satisfied by Canadawith imports at roughly 3.5 billion cubic feetwhile American exports of natural gasto Mexico have increased from 100 billion cubic feet in 2000 to close to 300 billioncubic feet. For Charles Matthews, the oil and gas line infrastructures, 14 of which gothrough the southern border of the United States, are the cornerstones of thedevelopment of a cross-border relationship between the United States and Mexico, as

    15Proyectos de Impacto Diferido en el Registro del Gasto. It is a budgeting procedure allowing Pemex to defera payment to a private company for investments projects in productive infrastructures until the deliveryof the product. This procedure implies the risk to increase public debt since profitability for theseprojects could not reach the objectives. Pemex has often used this source of financing.16 Energy intensity is calculated by the relationship between energy consumption per GDP unit per year.

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    well as between the three partners and therefore should be extended. In addition, hesays that free competition in this sector would also allow for an increase in efficiency.This idea has also been put forward by Lester Lave, Professor of Economics atCarnegie Mellon University; in his opinion, a more competitive market would allowconsumers to obtain better prices.

    The Price of EnergyEnergy price stability is an important factor in the construction of regional energysecurity. Uncertainties created by the volatility of energy prices make productioncosts unpredictable and investors apprehensive.

    That said, natural gas prices in North America are highly volatile. Enrique VelascoIbarra, senior partner at Enersa S.C., gives an example on the subject of the price ofnatural gas in Mexico: it surpassed 5 $US/ 1 000 f3 in February 2003 to 9 $US/1 000 f3in March 2003, to come back to the stable price of 5 $US/1 000 f3 the followingmonth. Such price volatility constitutes a risk particularly for the Mexican economy,where electricity production is depending more and more on North American natural


    According to Oliver Probst, Director of the Physics Department at ITESM, anotherimportant element affecting the price of gas is the fact that no new fossil fuel reserveshave been discovered in the world in the last ten years. He also points out that themost recent natural gas basin discoveries in Canada, the leading gas exporter in North

    America, date from the 1960s. A shortage in this energy source is anticipated

    Also, the issue of secure and uninterrupted oil and gas supply at a stable price is onthe minds of North Americans on the topic of energy security.


    Mexico imports energy from the United States even though it already has theenergy resources needed to answer to its own needs;

    Lack of capital prevents energy infrastructure development in Mexico; Natural gas price fluctuations have a bearing on the economic growth of each

    country; Support for developing energy interconnections is essential for the efficiency of

    North American markets.

    III- CONSOLIDATE NETWORKS AND DIALOGUEFor the majority of conference speakers, a reinforcement of regional energy security isdirectly linked to more integrated energy markets. In addition, as pointed out byLourdes Melgar, market development would permit outer regions to be served betterand therefore increase energy security. As well, one large consolidation would allow

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    for a diversification of energy sources for each of the countries17, as well as a morestable supply. Consumers should subsequently benefit from more competitive prices.

    Oil, Gas and Electricity Markets

    The large quantities of oil which are exchanged between North American countriesare transported by truck, ship and pipeline. Seven oil pipelines cross the borderbetween Canada and the United States and two cross the border between the UnitedStates and Mexico18. Mexican exports are composed mainly of heavy oil, at a rate of1.8 million barrels per day.

    The oil sands market is also expanding and would contribute to reinforcing energysecurity at the same time ensuring a reliable supply for NAFTA partners. Bob Taylor,the Assistant Deputy Minister of the Alberta Department of Energy, points out that

    Alberta is currently capable of producing close to 1 million barrels of oil per daycoming from oil sands, 2.5 times more than ten years ago. Since reserves are at about175 billion barrels, even if production is increased to 3.5 million barrels per day,reserves are sufficient to meet energy demands for the next 130 years.

    Canada, by exploiting its resources, could increase regional energy output andstrengthen the energy security of North America. Nevertheless, it must respect itsown regulations in regard to the environment and sustainable development. On thissubject, Peter Dickey, associate of the International Institute for SustainableDevelopment, stresses that the exploitation of oil sands must be done by respectingcertain environmental norms and with the objective of creating sustainabledevelopment. Oil sands exploitation generates numerous environmental impacts suchas intensive water use, earth movements as well as social impacts on surroundingcommunities, particularly Native Canadian ones.

    The natural gas market is the most integrated on a regional scale according to

    conference speakers and it is the market which seems to post the largest growth.Indeed, during the 1990s, the natural gas sector underwent a very large expansion,given the significant reserves available, competitive prices (at the time) and the factthat it is more ecological than other fossil fuels. The natural gas consumption crazelead to large investments in its infrastructures, investments that must currently bemaintained given increasing demand.

    As indicated by Lourdes Melgar, natural gas consumption surpassed production levelsat the end of the 1990s, and combined with significant deregulation in the UnitedStates, prices have increased dramatically. Even though each of the three countriespossess significant natural gas reserves, trade is still important, Canada exports 50%of its production to the United States, supplying for 94% of American demand.Mexico imports 15% of its total consumption from the United States. Today there are10 interconnection points for bidirectional gas pipelines between the United Statesand Canada. Around 15 interconnection stations are situated on the border betweenthe United States and Mexico, 8 of which belong to Pemex. According to Lourdes

    17 To obtain more information about data related to energy supply, it is possible to consult the document entitled:The Energy Situation in North America, prepared by the NAEWG and published in June 2002.18 North American Energy Working Group (NAEWG), The Energy Situation in North America, June 2002, pages 19 to23

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    Melgar, massive investments will be necessary upstream and downstream, in order tomeet ever increasing demand.

    Raising the necessary interconnectivity of natural gas transport networks betweenpartner countries, Julio Bastarrachea and Michael Ward from the Tidelands Oil andGas Corporation, stresses that governments should ease the license issuing process

    for businesses. His company had to obtain authorization from no less than 16different government agencies before being able to undertake the construction of agas pipeline infrastructure linking the United States and Mexico.

    As addressed by Lourdes Melgar in her study, the electricity industry in her opinionis in the middle of a transition and is experiencing a paradigm shift, coming fromgovernment regulations to market competition. At the heart of NAFTA partners,there exist large structural differences between the different national markets,especially because the United States opted for a very broad deregulation process whileMexico resisted reforms which would liberalize the energy sector. In Canada,electricity is regulated by provincial governments, except for in Alberta and Ontario.

    This concept would be upheld by the Quebec Minister of Natural Resources, SamHamad: During the 90s, North American electricity markets experienced a significantrestructuring. These transformations brought about an opening in the markets, and theyalso resulted in reciprocal practices and the establishment of norms.19

    Despite their structural differences, each country must accept the same challenge,which is to ensure that supply meets demand. Also, system reliability must bereinforced, not only in terms of production, but equally in terms of transport anddistribution, since a lack of supply would have significant economic repercussions.

    Also, Lourdes Melgar is of the opinion that major investments are required in theelectricity transport and distribution sectors. She points out that in other respectsmarkets stay relatively local, and that improved trade between partners will increase

    energy security.

    Expand Integration?

    For most of the speakers at the conference, a better integration of energy marketswould have a positive impact on supply. The consolidation of supply would permit themarket to be stabilized and make it more competitive, also allowing energy to besupplied at a better price for consumers on the whole.

    Lester Lave reflects on these assertions. Indeed, a more integrated North Americanenergy market involves risks, for example, making the Mexican and Canadianeconomies more vulnerable to American market fluctuations and vice-versa. Forexample, the uncertainty which followed deregulation in 2002 in the United Statescaused an increase in the price of energy, especially in California and adjacent states,sometimes up to more than 20 times the original price. He also contests the postulatethat a deregulation of markets, linked with more widespread integration, would makethe market more competitive: It is easy to deregulate markets. It is harder to make themcompetitive.

    19 From notes written for the conference: Forging North American Energy Security, Monterrey, April 1-2, 2004. TheMinister was unable to be present to give his speech.

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    The increase in trade between countries is dependent on a larger interconnectivity ofnetworks and infrastructures between partner countries. Also, governments shouldsupport businesses which develop trans-border energy transport networks.

    Julio Bastarrachea and Michael Ward stress to this effect the key-role that small- and

    mid-sized businesses can play. At the same time, political institutions from eachcountry should also encourage the development of interconnections by harmonizingtheir norms and regulations.

    The regulation issue is a major problem. Not only do regulations vary from country tocountry, but the sharing of different jurisdictions between different governmentdepartments encourages a proliferation of regulations which prevent efficiency andcompetitiveness in the sector, as stated by many conference speakers.

    Federalism and Integration

    The multiplicity of different regulations is easily explained when one knows that

    NAFTA is an agreement among 3 federal systems with 92 major sub-national governmentsand over 100,000 other governments20. In Canada particularly, the exploitation ofnatural and energy resources is the jurisdiction of provincial governments whileinternational and interprovincial commerce is a federal responsibility. As well, NativeCanadian communities have a say in the exploitation of certain natural resources.

    In the United States, regulations differ depending on the state, which creates aheadache for businesses. Each states different budget priorities have a direct impacton prices and the formulation of common and clear policies, as pointed out by EarlFry, Professor of Political Science at Brigham Young University. In addition, naturalgas and electricity transactions are regulated by the Federal Energy RegulatoryCommission, while consumer prices are determined by state public utilities

    commissions. Such an entangling of actors inevitably results in a slowing-down ofadministrative procedures, particularly when norms and regulations are not the same.Earl Fry mentions again: Balancing national, subnational, aboriginal, continental,consumer, producer, energy, environmental and intergenerational interests is a verydifficult and laborious process.

    Despite all this, the central governments participate sometimes in internationalnegotiations on issues linked with energy resources when provincial jurisdictions areinvolved. This was notably the case as pointed out by Joseph Dukert, Independent

    Analyst for the Energy Sector, when certain Canadian provinces were not inagreement with the federal government ratification of the Kyoto Protocol.

    The creation of a NAEWG, made up of federal ministers from the three partnercountries showed a political will for cooperation on a regional scale. As pointed out byLarisa Dobrianski, the Deputy Assistant Secretary for the Policy and International

    Affairs Office at the American Department of Energy, the members of the NAEWGhave met six times since the groups formation in 2001 and their discussions have

    20 Earl Fry, The Impact of Federalism on the Evolution of the North American Energy Sector, presented at the conference:Forging North American Energy Security, Monterrey, April 2, 2004.

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    been on different energy issues in North America such as commerce and trade,infrastructure protection, supply, etc. The groups objectives aim to:

    foster communication and cooperation among the governments and energysectors of the three countries on energy-related matters of common interest() enhance North American energy trade and interconnections consistent

    with the goal of sustainable development, for the benefit of all.

    In order to reflect on a diversity of interests and points of view in this field, butmostly to ensure cohesion in decisions, this initiative should go forward to include allbodies which have jurisdictional power. Most of the players directly affected by themanagement of the energy sector should not prevent their point of view from beingtaken into consideration. The North American Reliability Council is to this effect anexample of an energy organization which unites a large sample of representativesfrom the private sector and from different government levels, while being North

    American. The creation of North American energy security should be done inrespecting jurisdictions, but also integrating them in the development of a

    continental dialogue and the vision of the future of energy in North America.SUMMARY

    Energy trade development will be dependent on the development ofinterconnection networks, particularly binational;

    The large number of players constitutes one of the characteristics of the NorthAmerican energy sector and energy security is especially dependent on theefficiency of interactions between these numerous players

    A relaxing of regulations and a harmonization of continental norms wouldfacilitate the development of interconnecting binational energy networks;

    A continental energy dialogue should be developed by integrating all playersinvolved directly in the management of the energy sector in the three North

    American federations.


    Energy Efficiency, an Inexhaustible Resource

    During the conference, Kateri Callahan, President of the Alliance to Save Energy,spoke about energy efficiency as a cleaner, faster and cheaper way for the UnitedStates to increase energy security. According to her, demand is a large part of theproblem. Admittedly, since 1973, an increase in energy efficiency has allowed for a

    significant reduction in energy consumption. For example, modern cars can cover43% more distance than their 1973 counterparts with a single gallon of gasoline. Thismodification has allowed oil demand to be reduced to a rate of 3.8 million barrels perday. Nevertheless, average energy consumption per capita in the United States and inCanada is still 4 times higher than the average global consumption.

    According to Callahan, annual investments of $1.6 billion dollars by the AmericanFederal Government into 17 energy efficiency programs has allowed for 30 billiondollars worth of energy savings. Alliance to Save Energy therefore has a presence in

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    Mexico with the goal of increasing efficiency in the water consumption sector and incooperation with the private sector, to harmonize standards, labelling and energypolicies. The Collaborative Labeling and Appliance Standards Program works alongsidethe NAEWG in order to support the evaluation of existing programs for energyefficiency in Mexico.

    As well, Callahan recommended large-scale awareness-raising and more activeparticipation on the parts of governments from the three countries in regard to thepromotion of energy efficiency. The countries will be less dependent on energyresources, on their prices and their impact on national economic growth if they usetechnology, regulatory systems, harmonisation of energy efficiency norms andstandards, and mass education all at once to this effect. An exchange of knowledgebetween different partners will also lead to an overall improvement in the field ofenergy efficiency.

    The Challenges of Using Clean Energy Sources

    According to Armando Llamas, Director of the Centre for Energy Studies at ITESM,

    83% of the energy consumed in Mexico comes from fossil fuel. In this context, greenenergy would be a means of reinforcing the energy security of the region. As pointedout by many speakers at the conference, the use of renewable energy would allow for adiversification of sources and a reduction in the dependence on fossil fuels at thesame time preserving the environment and ensuring sustainable development. This ispossible in North America where many options are available such as wind, solar andbiomass energy.

    As underlined by Ubaldo Incln, the supply of renewable energy is alwaysintermittent, its prices being higher than conventional energy, its installations uses alot of space, wind turbines in particular, and amortisation on investments in thissector takes a relatively long time. As well, the lack of capital makes the development

    of supplementary installations rather difficult and also financing these projects is acomplex process. At the same time, the development of renewable energy projects inMexico can serve as an agent for regional development, especially in the southernstates of Mexico such as Oaxaca.

    According to Ubaldo Incln, the problem is not technological as much as it iseconomical. In the current market structure, fossil fuel prices do not consider the theexternalities that come from the use of these conventional resources, externalitiesthat are smaller in the case of green energy. A different way of calculating would bringout renewable energy price competitiveness.

    The speakers made references to many options which would allow the green energymarket to be stimulated in North America. Each option is always oriented accordingto the national framework that applies.

    In Mexico, for example, renewable energy deserves to be strongly promoted. Aspointed out by Ubaldo Incln, Oaxaca has a wind energy output potential of close to30 000 MW. However, only 10% of this potential is currently exploited, notablybecause of a lack of infrastructure. In order to further develop renewable energyprojects, Ubaldo Incln proposes the implementation of a large-scale renewable

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    energy market in Mexico which would produce an extra 1 000 MW in 10 years. Toencourage implementation, he proposes the creation of a green fund to ensure ratecompetitiveness and stimulate private investments through scale economies. To dothis, Mexican energy organizations (SENER, CFE, etc) should at the same timedevelop their institutional capacities and encourage the use of renewable energysources.

    Mexico can also call on many different international organisations to help financesmall scale projects, as was the case in Oaxaca where the PNUD financed wind energyresearch and development projects.

    The Integrated Market for Tradable Renewable Energy Certificates

    In order to stimulate the renewable energy market in the United States and Canada,governments from certain American states and some Canadian provinces mademandatory the inclusion of renewable energy in the portfolios of local distributors. Todo this, many follow-up systems for verifying certification were put into effect inorder to ensure that the distributors were actually using green energy. The marketing

    of these certificates, each representing 1 Mwh of energy created from renewableresources helped to ensure that a significant level of renewable energy was used on aregional scale, proportions varying from one state to another.

    Three systems covering 5 American states are currently active.21 Other projects areunderway in order to cover 5 other states, some Canadian provinces and a Mexicanstate. The Western Renewable Energy Generation System, expected for 2005, wouldcover a significant part of the Western part of North America, from Baja California toBritish Columbia, including Saskatchewan. Other tracking systems for energycertification will be implemented in the Atlantic zone of North America.

    Each certification tracking system has its own norms and modalities in regard to the

    duration of the certificates, verification of the producers credentials, the territorycovered, the type of participation, etc. The Centre for Resources Solutions, representedby its Director, Jan Hamrin, is working toward an implementation of an integratedmarket for the exchange of renewable energy certificates through the North AmericanAssociation of Issuing Bodies which would bring together organizations in charge ofcertification. This market will allow these organizations to network and hence ensurea better compatibility on a North American scale and establish the basic norms andagreement protocol related to the import and export of these certificates.

    The implementation of an integrated market for tradable renewable energycertificates constitutes a sustainable way of stimulating the market, increasing theexploitation of its different types of energy and making prices flexible according tosupply and demand, as shown by Matt Williamson, a Natsource broker. Such a marketwould stimulate technology development and guarantee opportunities for producers.

    To summarize, this market for the exchange of renewable energy certificates wouldhelp strengthen North American energy security since the market would not depend

    21 The New England Power Pool Generation Information System, the Wisconsin Renewable Resource Credit Programand the Electricity Reliability Council of Texas.

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    so much on natural gas and oil prices and it would contribute to environmentalprotection and sustainable development.


    Curbing increasing energy demand would improve and promote energy efficiency; An increase in the availability of renewable energy sources is essential in order to

    diversify our energy portfolio, lessen our dependence on oil and gas and ensuresustainable development which respects the environment;

    Support for the implementation of an integrated market for renewable energycertificates would be an efficient way to stimulate production and use ofrenewable energy resources on a North American scale.

    V Taking Advantage of Resources

    Mexico, a Crucial Contributor

    During the conference, Edward Kelly, Vice-President of North American Gas andPower of Wood MacKenzie Consultants, mentioned how important it was instrengthening North American energy security that Mexico contributes in a moreeffective way. Indeed, Mexico has the potential of becoming a net exporter of naturalgas if it would exploit its reserves. Major impacts on the dynamics of natural gas tradeare to be expected such as a stabilization of natural gas prices, more competitiveprices, a sustained economic growth and a continuous supply in the region. In orderto take better advantage of the Mexican natural gas reserves, M. Kelly recommendsthat Pemex has to be more daring in its strategic plan, but also more realistic in itsfinancial plan. Investments have to be more oriented towards the development of the

    upstream sector. Also, the multiple service contracts have not produced theeconomical impacts that were expected for this amount of investment. The privatesector has to play a bigger role in the North American natural gas market.

    The North American Energy Fund

    In order to stimulate the influx of investments, Dr. Alberro presented a study duringthe conference on the creation of a North American Energy Fund.

    During the first conference organized by NAFI in March 2003, Dr. Robert Pastor andMr. Samuel Morley had put forward the idea of creating a North AmericanInvestment Fund, inspired by European Cohesion Funds. This Fund would stimulate

    economic growth in Mexico and, by all means, increasing exports to Mexico fromCanada and the United States, strengthening North American economic community.In that sense, Ambassador Andrs Rozental had proposed the establishment of anInvestment Fund, financed by private capital, related to the oil sector. The objectivesof this Fund were those of the leveling development between the three NAFTAcountries, such as stipulated in the Guanajuato Proposal of 2001, and signed by bothpresidents George W. Bush and Vicente Fox: The Guanajuato Proposal also talked aboutstriving to consolidate a North American economic community whose benefits reach the

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    lesser-developed areas of the region and extend the most vulnerable social group of ourcountries.22

    The candidate to future presidential elections and former Foreign Affairs Secretary,Jorge Castaeda, also architect of the Guanajuato Proposal, recommends that Pemexdoubles its production until 2010, as well as becoming a net exporter of natural gas.

    The actual estimated oil reserves would allow such a production for at least 14 years.$10 billion would be additional revenue for the Mexican government. Those billionswould than be invested in a development fund, oriented toward Mexican human andphysical capital.

    Additional oil produced would respond to American demand. According togovernmental forecasts, the American demand is expected to increase to 3.6 millionsbarrels a day for the next 10 years. Canada should increase its production to 600 000barrels a day, leaving a gap of 3 millions barrels a day to fill. This solution seemsappropriate since the United States has stated its intention to reduce theirdependence on less stable regions in the world.

    But to double its oil production, Mexico needs an additional $15 billion a year until2010. Following a Pemex budget increase of 50% authorized by Congress in order todevelop exploration and development, the increase of savings in the Bolsa de Valoresand the additional $7 to 8 billion generated by pidiregas and CSMs, $3 to 5 billioncould be generated by the energy fund. Dr. Alberro states 5 new mechanisms forPemex to get more capital, private and public. In exchange for those investments,Pemex would return part of the income generated by the increase production of oiland natural gas.

    1. A trust fund based in the United States could, with leasing agreements concludedwith Pemex, obtain financing in order to buy oil equipment (such as drilling

    platforms) and lease this equipment to Pemex so that it will increase its oiloperations. This oil equipment will not be owned Pemex but will allow it toincrease its production and exports;

    2. American and Canadian governments can ask their import-export agencies tocreate special lines of credit in order to support Mexican initiative, from which alarge part of the inputs would be imported from American and Canadian firms;

    3. Canadian and American Institutional Investors could take part in financing byinjecting capital into the trust where funds would be guaranteed by future oilrevenues;

    4. The World Bank and/or the Inter-American Development Bank could probablysupply the funds needed since the World Bank recently announced that ithenceforth would support energy projects that were not privatized;

    22 Idem, p. 3

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    5. Finally, the American government could establish a long-term buying program forits strategic reserves, which would allow future Mexican oil production to bebought in advance.

    Even if the creation of the Fund respects the Mexican constitution, the congress stillhas to accept that Pemex invests 50% more in exploration and development. The risks

    associated with such a Fund are various: an increase in debt and an oil sectordominated by the US dollar.

    But the success of this fund depends also on competitiveness, structural and politicalchanges. Transparency and accountability are essential conditions. A cultural changein Pemex should also be considered and the development of a political consensus inregard to the fund is also essential.

    In fact, benefits of the fund are numerous. The increased supply would allow theUnited States to fulfill its oil demand as it also stimulates the Mexican economy. Thefund responds to energy, political, financial and social needs for the three NAFTA

    countries.Joseph Dukert went further in this proposal, by suggesting that the fund goes beyondMexican borders and gets a trilateral effect. The exploitation of Albertas oil sandscould be financed by the fund and then allow North America to consider thepossibility of energy self-sufficiency.

    The North American Development Fund

    The creation of the North American Energy Fund would allow the Mexican State tofinance a development fund focused on social needs of Mexico. Dr. Alberro considersthat with the additional $10 billion a year generated by the Fund, the State coulddouble its expenses in science and technology, increase by 50% its budget in justice

    and law enforcement, and raise investments in health and education by 25%. Suchreforms would stimulate the economy in the long term and reduce political and socialissues related to the development gap with its northern neighbours.

    Canada and the United States would profit from such investments in Mexico, sinceeconomic growth generates more imports from the two other NAFTA countries. Morethan 70% of Mexican imports come from Canada and the United States.


    The North American Energy Fund would allow Pemex to finance its oilproduction increase in order to respond to the North American energy demand,stabilizing the supply and reinforcing energy security in the region.

    Profits generated by the Fund would allow the Mexican State to finance thesocial fund focused on the human capital of Mexico

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    VI - Conclusion

    Energy security is a crucial issue in the economic development and stability of eachNAFTA country. Definitions of energy security differ from one to another, but theyare not incompatible. In fact, strengths and needs are complementary.

    Forging energy security means acting on the supply of energy by increasing anddiversifying sources of energy, reducing demand, stabilizing prices, developingdistribution infrastructures and reinforcing political networks.

    Concerning energy supply, it has been mentioned that a more systematic use ofrenewable energy would reduce the dependence on oil and gas while generating moresustainable development in the region. The creation of an integrated North Americanmarket of TRCs would stimulate the use of alternative energy in the region.

    A more extensive use of Mexican energy resources would also answer to increasingenergy demand in the United States with a more stable and secure supply. The North

    American Energy Fund would help finance an increase in oil production by generatingmajor investment in the upstream sector while respecting the Mexican constitution.

    Concerning demand, it seems important for speakers to increase awareness of energyefficiency and harmonize energy efficiency standards among the three countries.Harmonizing policies and programs would generate economical and ecologicalbenefits, by reducing the consumption of oil and gas.

    Price stability is also a major issue concerning energy security. The fluctuations of oiland gas prices create insecurity in the markets, slowing down economic growth. Amore integrated energy market would be a solution in stabilizing energy prices.Harmonizing standards would also facilitate the development of binationaldistribution infrastructures.

    It is also crucial to encourage cooperation among governmental institutions in orderto harmonize standards among the three federations. Dialogue should also include allthe players in the process, and go beyond the federal government.

    The Energy Sector, being a field where national vulnerabilities are common, it isimportant to take into consideration and to respect the distinctiveness and theinterests of each nation. In this sense, it is proper to remember that coordination inthe energy sector is not the same as uniformity, but rather that the respective

    national visions are compatible and that interests converge. In this regard, it isobvious that the implementation of a multisectorial trilateral strategy aiming toincrease security would allow the adopted measures to have a heightened impact,goying beyond the adoption of national strategies. Problems concerning energysurpass the borders of our countries, that said, their solutions must be concerted.

    In conclusion, to the question Is it possible and desirable to develop a concertedstrategy to increase North American energy security? the response is affirmative.

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    North American partners should develop a co-responsible approach which would gobeyond unilateral strategies for strengthening energy security if they want to respondin a sustainable manner to the financial, political, environmental and socialpreoccupations with which they are confronted.

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    The conference organized by NAFI has gathered 47 speakers and chairs, all wellknown for their expertise in the energy and North American integration sectors.

    Among them, 51% came from Mexico, 32% from the United States and 17% fromCanada. 34% came from the business sector, 21% from the political sector, 26% wereacademics and 19% were representatives of non-governmental organizations.

    Countr y of ori gin of speakers








    Sector of or igin of speakers










    Among the 280 people present at the event, 67% were from Mexico, 14% from the

    United States and 17% from Canada. 2% were Europeans. Also, 40% of theparticipants came from the business sector, 19% from the political sector, 26% wereacademics, 5% were from non-governmental organizations and 10% were from themedia.

    Sector of origin of part icipants











    Contry of origin of participants










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    Organizers of the conference benefited from the support of 25 organizations. 16 weresponsors and 9 were collaborators. Among the sponsors, 6 came from Canada, 7 fromMexico and 3 from United States. 8 were from the business sector, 6 were publicorganizations and 2 were non-governmental organizations.

    Sponsors' Country of Origin








    Sponsor's Sector of Origin








    Survey results

    During the conference, a survey was performed among the participants in order todetermine their level of satisfaction and get a general perspective of theirappreciation. 55 people have answered our questions, 26% of the people present.

    98 % of the people questioned found the selection of speakers, the quality of thepresentations, the organization and the conference location excellent or very

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    good. The largest complaint concerned the short time allowed for questions. 87%think they have established good contacts during the event.

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    Gigagwatt Partners- Fonds Jeunesse Qubec-

    State of Nuevo Leon- Department of Foreign Affairs and International Trade- Ministre des Relations internationales du Qubec- Ministre des Ressources naturelles, de la Faune et des Parcs du Qubec- Exxon Mobil- CEMEX- lectricit de France- Commission for Environmental Cooperation in North AmericaMegawatt Partners- Magna - Formex Automotive Industries, S.A. de C.V.- Canadian Chamber of Commerce in Monterrey- Sempra EnergyKilowatt Partners- Wood Mackenzie- Industry Canada- Tidelands Oil and Gas Corporation- North American Development BankCollaborators- Canadian Centre for Energy Information- Institute for Energy, Law, and Entreprise, University of Houston- Centre Hlios- Association de lindustrie lectrique du Qubec- Center for North American Studies, American University- Office Qubec-Amriques pour la jeunesse- Instituto Mexicano de la Juventud- Brouillette, Charpentier, Fortin, s.e.n.c.- Quebec New-York CorridorNAFI`s activities are made possible thanks to the financial support from FondsJeunesse Qubec and the ministre des Affaires municipales, du Sport et du Loisir duQubec.

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    Increasing North American Energy SecurityChair: Robert A. Pastor, Vice-President, American University

    Speakers: Lourdes Melgar, Independent Energy Consultant Edward Kelly, Head of North American Gas & Power Consulting, Wood

    Mackenzie Mick K. OKeefe, Corporate Planning, Exxon Mobil Bob Taylor, Assistant Deputy Minister, Department of Energy, Alberta

    Interconnectivity of Border RegionsChair: Victor Lpez Villafae, Director, Center for North American Studies,Tecnolgico de MonterreySpeakers :

    Enrique Velasco Ibarra, Main Partner, Enersa SC Charles Matthews, Railroad Commission of Texas Michael Ward, President & CEO, and Julio Bastarrachea, Tidelands Oil & Gas


    The Greening of North American EnergyChair: Dr. Flory Anette Dieck-Assad, Professor, Department of Accounting andFinance, ITESMSpeakers:

    Peter Dickey, Associate, International Institute for Sustainable Development(IISD)

    Kateri Callahan, President, Alliance to Save Energy Raul Rodrguez Barocio, Director, North American Development Bank

    Doing Business in the North American Energy SectorChair: Amb. Jesus Reyes Heroles, North American InstituteSpeakers :

    JoAnne Butler, General Manager, Mexican Operations, TransAlta Dr. Cintia Angulo de Leseigneur, General Manager for Mexico, Electricit de

    France Marcelo Chauvet Sanchez, Director, Compaa Mexicana de Gas

    Challenges of the Mexican Energy Sector Felipe Caldern, Energy Secretary of Mexico

    Energy Price CompetitivenessChair: Dr. Federico Viramontes Brown, Chair, Graduate Program and Energy Area,ITESM.Speakers :

    Dr. Armando Llamas Terres, Director, Centro de Estudios de Energa, ITESM-Monterrey

    Dr. Lester B. Lave, Co-Director, Electricity Industry Design, Carnegie Mellon

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    Dr. Oliver Probst, Department of Physics, ITESM and member of the Catedrasobre Energa ITESM

    Mexicos Role in Forging North American Energy Security Jorge G. Castaeda, Candidate for the Presidency of Mexico 2006

    Financial Mechanisms of the Mexican Energy SectorChair: Amb. Andrs Rozental,President, Mexican Council on Foreign Relations(COMEXI)Speakers:

    Jos Alberro, Director, Law and Economics Consulting Group (LECG) Raul Rodrguez Barocio, Director, North American Development Bank

    North American Energy Reforms: What Are the Options?Chair: Dr. Michelle Michot Foss, Executive Director, Institute for Energy, Law &Enterprise, University of HoustonSpeakers :

    Pat Wood, President, Federal Energy Regulatory Commission Francisco X. Salazar Diez de Sollano, President, Energy Commission of the

    Chamber of Representatives, Mexico

    Towards an Integrated North American Market for TRCsChair: Vronique Robichaud, Program Manager, CECSpeakers:

    Jan Hamrin, Executive Director, Center for Resources Solutions Theresa Howland, Manager, Green Energy Marketing, Vision Quest

    Windelectric Matt Williamson, Broker, Natsource Ubaldo Inclan, Director, Renewable Energy and Environment, SENER Mexico

    The Impact of Federalism on the Energy SectorChair: Ing. Eduardo Andrade, President, Mexican Association for Electrical EnergySpeakers:

    Earl Fry, Professor, Brigham Young University Joseph M. Dukert, Independent Energy Analyst

    Governmental Energy Cooperation in North AmericaChair: Jeremy Martin, Director, Energy Program, Institute of the AmericasSpeakers:

    Larisa Dobriansky, Deputy Assistant Secretary for National Energy Policy, USDepartment of Energy

    Salvador Beltrn del Ro M., Deputy Assistant Secretary for InternationalAffairs, SENER

    John Lowe, Executive Director, Energy Policy Branch, Natural ResourcesCanada

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    During the conference, 21 media representatives were present. Among them, 1 wasfrom television, 5 from radio, 3 from agencies, 3 from specialized magazines and 9from newspapers. The complete press review is available on NAFIs web site


    RadioMVS RadioPanoramaRadio AcitRadio-Canada

    Radio Formula

    NewspapersBloombergEl EconomistaEl FinancieroEl NorteEl UniversalForbesLa JornadaLa PresseLe Devoir

    MilenioOil and Gas Journal

    AgenciesAgencia ContrasteNotimexReuters

    MagazinesCambioEl Mundo del PetrleoExpansin