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Mexican president-elect vows to end use of fracking

July 31, 2018

FILE - In this July 9, 2018 file photo, Mexico's President-elect Andres Manuel Lopez Obrador gives a press conference in Mexico City. Lopez Obrador said on Tuesday, July 31, 2018 that he plans to spend heavily in the public health system so Mexicans can enjoy European- quality free health care. (AP Photo/Moises Castillo, File)

MEXICO CITY (AP) — Mexico’s president-elect said Tuesday that he will end fracking, the oil and gas extraction method that has just begun to take root in areas of the country’s north.

Asked about the potential risks of fracking at a news conference, Andres Manuel Lopez Obrador said, “We will no longer use that method to extract petroleum.”

Mexico has a huge potential shale formation in the Burgos basin, similar to the Texas Eagle Ford fields.

But while a few wells have been drilled, the Mexican government has only recently scheduled bidding on opening some blocks for commercial development through fracking.

Lopez Obrador also railed against private electricity generation contracts that displaced the government-owned Federal Electricity Commission, known as the CFE. He said that trend would be “corrected,” without saying whether he would seek to overturn existing contracts.

“The neoliberal governments deliberately closed the CFE plants in order to buy electricity from foreign companies at very high prices,” Lopez Obrador said. “All of that will be corrected.”

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