Mexican President Enrique Peña Nieto has fired Emilio Lozoya Austin as CEO at the country's state-owned oil company, Pemex.
Lozoya will be replaced by José Antonio González Anaya (pictured), the country’s current director of the Social Security Institute (IMSS), a position he has held since 2012.
In his announcement today (8 February), Peña Nieto said Lozoya's replacement faces two key challenges: to accelerate Pemex’s transformation, thereby maximizing opportunities presented by the energy reform, and strengthen Pemex’s financial and productive health during this period of low oil prices.
“It will be necessary to adjust the cost structure, review program spending and strengthen the investment processes, using new schemes and investment partnership with the private sector, provided by the energy reform,” he said.
González holds a BS in economics, a BS in mechanical engineering, and a PhD in economics. He previously served as a senior economist for Bolivia, Paraguay and the World Bank. González was also a senior research at Stanford University.
Since the energy reform passed in 2013, Pemex has undergone restructuring changes. Lozoya told a crowd at CERAWeek in 2014 that the reform would bring a “new Pemex.” After 75+ years of state monopoly, the company would bring on a new board, with five independent members.
In May 2015, Pemex approved a new structure for its exploration and production subsidiary (PEP), with a committee chosen to oversee its activities, led by Juan Javier Hinojosa Puebla, development and production director, and Jose Antonio Escalera Alcocer, director for exploration.
However, even before the worst of the oil price slump, Pemex reduced its budget in early 2015 by US$4 billion, representing an 11.5% decrease from 2014. More budget cuts are expected to be announced, according to news reports.
Motivations
Beside the oil price, Peña Nieto has a lot riding on the success of the energy reform, as it will be a major part of his legacy as president. But not only that, its continued success will determine whether his ruling party (PRI) stays in power, said Francisco J. Monaldi, a fellow in Latin American Energy Policy for the Baker Institute at Rice University told OE back in September 2015.
“Mexicans are very suspicious about corruption,” Monaldi says. “If there’s a perception that the (energy) reform has been a failure, he [opposition leader Andres Manuel Lopez Obrador] might have a political flag there.”
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Where does Mexico go from here?
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