Romney Proposes Energy Plan with Mexico

In an attempt to revive the debate about jobs and the economy and move away from the image problems that are facing his campaign, Mitt Romney, the Republican presidential candidate in the U.S., revealed yesterday his plan to achieve energy independence by 2020. The plan includes a partnership with Mexico and Canada that will generate, he says, up to 3 million jobs and $1 billion in revenues in the next eight years.

“This is a real, achievable objective,” Romney asserted in defense of his vision of the future of energy. “I have a vision for an America that is an energy superpower, rapidly increasing our own production and partnering with our allies Canada and Mexico to achieve energy independence on this continent,” Romney said at a campaign event in the town of Hobbs, New Mexico.

“… But I think by virtue of a new president there … we’re going to find ourselves being able to work with Mexico to share our technology and know-how to help them become more productive,” added the Republican candidate, in reference to the Institutional Revolutionary Party’s return to power in Mexico following the recent victory of President Enrique Pena Nieto. It was also an obvious nod to Hispanic voters, who will be crucial in the state of New Mexico.

Analysts and experts agreed that Mexico’s government must exercise caution in dealing with Romney’s proposal and decide according to its own economic and sovereign interests. “The concept of a North American energy plan is not new, given that the three countries complement each other in certain ways. But the plan must align with the interests of Mexico as much as with those of Canada,” said Armand Peschard Svedrup of the Center for Strategic and International Studies.*

“It is good that Romney is thinking about the best way to strengthen the relationship with Canada and Mexico and energy policy could be part of it,” said Andrew Selee, director of the Woodrow Wilson Center’s Mexico Institute. He insisted that before making a decision, “they should see what policies each country chooses to pursue on this issue.”*

Romney’s proposal to gradually increase drilling for resources, both offshore and within the U.S., was immediately rejected by the Democratic campaign. Democrats said that the policy would “take us backward” and would “ensure that big oil’s profits continue to increase.” According to a new poll by the University of Quinnipiac, Romney is currently tied with Obama in the states of Florida and Wisconsin.

“Romney wants to continue giving millions of dollars in fiscal subsidies to oil and gas companies and irresponsibly open new areas to extraction, while giving up our growing energy efficiency and the development of domestic sustainable energy sources,” said Gabriela Domenzain, spokesman for the Obama campaign.*

“This is not a recipe for energy independence. It only ensures the increase of the earnings of big oil companies while handing over the sustainable energy sector, which sustains jobs in states like Michigan, Ohio and Iowa, to countries like China,” she added.

The cornerstone of Romney’s plan is to open more areas to offshore drilling, including in the Atlantic, where it is currently prohibited. He also wants to give states the power to establish all forms of energy production, a significant change from the current policy. This may face strong opposition in Congress.

Romney said he is willing to take advantage of significant oil fields and tar sands in Canada and promised to give the green light to the expansion of the Keystone pipeline — often called Keystone XL. The Obama administration currently is blocking the project because of environmental concerns.

Another key element in Mitt Romney’s proposal is related to the more than $4 million in subsidies that the oil industry currently receives. The Obama administration has proposed cutting those subsidies to invest in more clean and sustainable energy sources.

Finally, Romney insisted that the U.S. must remember its alliances when considering its energy partners: “… We won’t need to buy any oil from the Middle East or Venezuela or anywhere else where we don’t want to,” he said.

*Editor’s and translator’s note: It was not possible to find sources for these quotes. It is likely that the quotes were originally said in Spanish, at a conference or in a book.