Mexico’s Sheinbaum Expected to Seek Support from Political Heavyweights for State Energy Positions

By Diego Oré

MEXICO CITY (Reuters) – Mexico’s former foreign minister, a member of a prominent political family, and a party leader are vying for key energy positions in President-elect Claudia Sheinbaum’s administration, sources indicate. This suggests that political acumen may take precedence over technical expertise in managing the country’s state energy enterprises.

Sheinbaum’s upcoming cabinet will feature a blend of seasoned and fresh faces, as she aims to continue the core agendas of her predecessor while imprinting her vision on critical sectors.

The state oil company Pemex and the Federal Electricity Commission (CFE) are essential components of President Andres Manuel Lopez Obrador’s strategy for achieving energy independence in Mexico.

As a climate scientist, Sheinbaum faces the challenge of balancing her commitment to uphold Lopez Obrador’s policies with the necessity of enhancing Mexico’s environmental performance and boosting renewable energy production.

Among the candidates considered for the leadership role at Pemex—a heavily indebted oil producer crucial to government revenue—is Lazaro Cardenas, an ethnohistorian and former advisor to Lopez Obrador. Cardenas, who is also a former governor and the grandson of the revered leftist leader Cuauhtemoc Cardenas, is seen as a leading candidate. He may also be considered for the Energy Ministry position.

Despite lacking direct experience in the energy sector, Cardenas’s distinguished family legacy, particularly his grandfather’s role in nationalizing Mexico’s oil industry in 1938, offers him a significant advantage. However, this background also suggests he might not pursue radical reforms at Pemex, according to sources familiar with his profile.

It’s not uncommon in Mexico for political figures with limited industry experience to be appointed to major state enterprises, although there have been exceptions. For instance, during his presidency from 1994 to 2000, Ernesto Zedillo appointed energy expert Adrian Lajous to lead Pemex.

In industry discussions, Deputy Finance Minister and Pemex board member Gabriel Yorio has been mentioned, along with Luz Elena Gonzalez, who previously served as finance secretary for Mexico City.

All three candidates—Cardenas, Yorio, and Gonzalez—have not publicly commented on these developments.

"The choice for Pemex will reflect Sheinbaum’s strategy regarding a key entity in her goals to enhance Mexico’s energy transition,” noted Matias Gomez Leautaud, an analyst at Eurasia.

At CFE, the country’s largest electricity supplier, former Foreign Minister Marcelo Ebrard and Mario Delgado, the president of the Morena party, are leading contenders for the top position. Neither has a background in power generation, emphasizing Sheinbaum’s preference for political insight rather than strictly technical knowledge.

CFE has been central to Lopez Obrador’s strategy of increasing state involvement in power generation, but both CFE and Pemex have come under fire for their poor environmental records. Stakeholders will be closely monitoring Sheinbaum’s ability to implement necessary changes at these state enterprises.

Critics have highlighted CFE’s failure to enhance production capacity, leading to power outages during periods of extreme heat and drought.

Both Ebrard and Delgado’s communications teams have opted not to provide comments.

"We anticipated a strong degree of continuity given Sheinbaum’s alignment with President Lopez Obrador’s priorities," Gomez Leautaud stated. "In some areas, such as the finance ministry, continuity sends a positive message to the markets… However, in the case of Pemex management, it raises concerns due to the current administration’s lack of progress in this area."