Mexican Petroleum Fund: research transfers
Mexico‘s Federal Budget and Fiscal Responsibility Law states that 20% of transfers from the Mexican Petroleum Fund are earmarked for research on hydrocarbons and energy sustainability.
As part of the Mexican government’s actions towards the energy transition, three Mexican Centers for Innovation in Geothermal, Solar and Wind Energy (CEMIEs) have been created.
Their main functions include medium and long-term scientific-technological planning focused on developing and taking advantage of each of the renewable technologies, the development of a portfolio of projects and strategic actions to obtain valuable results for the country’s energy sector, the training of specialized human resources, the strengthening of research infrastructure and the academic-industry linkage.
Mexican Petroleum Fund
Mexico also has a trust fund called “Fondo Sectorial CONACYT–Secretaría de Energía-Hidrocarburos”, which was created to address the main problems and opportunities in hydrocarbons through the development of technology and the training of specialized resources.
The objectives of this Fund include scientific and technological research applied to the exploitation, exploration and refining of hydrocarbons, as well as to the production of basic petrochemicals, the adoption, innovation, assimilation and technological development in the areas mentioned in the previous paragraph, and the training of specialized human resources in the oil industry, in order to complement the adoption, innovation, assimilation and technological development.
In 2020, amendments were introduced to the Federal Budget and Fiscal Responsibility Law (LFPRH) to allow the application of support measures in the context of the Covid-19 pandemic and other emergency situations.
The SHCP is allowed to authorize additional disbursements to those approved in the Expenditure Budget, charged to the surpluses, if any, resulting from the revenues authorized in the Revenue Law or from surpluses of the entities’ own revenues.
It is also provided that the proposed Expenditure Budget shall include provisions for carrying out preventive actions or executing programs and projects to address damages caused by natural phenomena.
It is also provided that transfers from the Mexican Petroleum Fund made for research on hydrocarbons and energy sustainability will be allocated, through the Ministry of Energy, 20% to support research activities to identify areas with hydrocarbon potential carried out by the National Hydrocarbons Commission.
Resources are also directed to support scientific research, technological development and innovation projects in the exploration, extraction and refining of hydrocarbons, as well as the production of petrochemicals; 15% for research activities of the Mexican Petroleum Institute; and 65% to finance projects for renewable energy sources, energy efficiency, the use of clean technologies and the diversification of primary energy sources.