U.S. - Mexico Binational Commission: Energy Working Group
Released by the Bureau of Western Hemisphere Affairs ACTIVITIES OF THE ENERGY WORKING GROUP During the eighth meeting of the Energy Working Group (EWG) under the U.S. - Mexico Binational Commission, both delegations analyzed recent developments and reaffirmed their commitment to cooperate towards strengthening bilateral energy trade and promote scientific and technological cooperation in the sector. The EWG reviewed the status of each of the high-priority issues in the bilateral energy relationship between the U.S. Department of Energy (DOE) and the Mexican Secretariat of Energy (SENER). In the area of Strategic Infrastructure Protection, in January and October 2003, bilateral meetings were held to review the progress achieved by various Working Groups, including Energy, in the implementation of the Trans-border Strategic Infrastructure Protection plan of the Border Partnership Action Plan (item # 3). Mexico also participated in the Carbon Sequestration Leadership Forum led by the United States, held in June 2003, in Tysons Corner, Virginia. This U.S. initiative was supported by the following countries: Australia, Brazil, Canada, China, Colombia, European Commission, India, Italy, Japan, Norway, Russia, United Kingdom and Mexico, whose Energy Ministers signed the Charter of the Forum. In another area, both countries reaffirmed their commitment to convene three workshops on cross border energy issues. The first was hosted by DOE in November 2002, in San Antonio, Texas. Mexico intends to host the second workshop in Saltillo, Mexico and the U.S. will host the third one in southern California in 2004. In the natural gas area, Mexico participated in several meetings organized by the US National Petroleum Council (NPC), which conducted a comprehensive study on the natural gas market over the coming 25 years. This study, which was recently released, concludes that Mexico's role as gas supplier to the US is marginal because it is forecast that Mexico will remain a net importer in the short term. In addition to the regular bilateral work of the EWG, the U.S. and Mexico are engaged in joint activities that reflect their respective commitments at the 2002 World Summit on Sustainable Development (WSSD). In particular, the U.S. and Mexico are implementing activities in furtherance of the U.S. Government's Clean Energy Initiative entitled, "Powering Sustainable Development from Village to Metropolis," which was launched at the WSSD. i) improve rural access to energy services; ii) develop a financial tool for multiple energy efficiency projects in the border region; iii) implement a pilot project to retrofit diesel buses in Mexico City, and iv) conduct an analysis of potential refinery retrofits. These projects are being undertaken by the U.S.Agency for International Development (USAID), DOE, the Environmental Protection Agency (EPA), and their counterparts at SENER and the Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT). In the trilateral area, the North American Energy Working Group (NAEWG) held its fourth meeting in Washington, DC in December 2002, and its fifth meeting in Ottawa, Canada in July 2003. The Group has continued its tasks under the five Experts Groups: Energy Picture; Electricity Regulatory Issues; Energy Efficiency; Science and Technology; and Natural Gas Trade and Interconnections, and the ad hoc Critical Infrastructure Protection Forum. Under these Groups, SENER, DOE and Natural Resources Canada (NRCan) have carried out important cooperation activities, including the following deliverables:
In addition, NAEWG has continued discussions on energy policy and has promoted technical and scientific exchanges. The Group is preparing a new version of the North America Energy Picture, which is expected to be released late in 2004. Also, the Group is developing a joint methodology for demand forecasting and will continue to work on supply issues in the future, using the SAGE Model. In December, 2002, the Experts Group on Electricity Regulatory Issues initiated a monthly clearinghouse report among the Energy Departments and regulatory bodies of each country. The NAEWG Science and Technology Experts Group has finalized a trilateral Agreement Mechanism. The Natural Gas Trade and Interconnections Experts Group has agreed to finalize a Natural Gas Vision Report by the beginning of 2004. During the fifth meeting of the NAEWG held on July 16, 2003 in Ottawa, the principals from Mexico, the U.S., and Canada took note of the achievements completed by the Experts Groups, and reviewed a draft report to be submitted shortly to the Secretaries and Minister of each country, The NAEWG also agreed to develop a mechanism to engage with business and other potential stakeholders. FUTURE ACTIONS
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