VZCZCXRO7680
RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #1259/01 0712248
ZNR UUUUU ZZH
R 122248Z MAR 07 ZDK
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 5782
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEHOT/AMEMBASSY OTTAWA 2278
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 04 MEXICO 001259
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/MEX, WHA/EPSC, EB/IFD/OMA
STATE FOR EB/ESC MCMANUS AND IZZO
STATE FOR WHA/CAN GSPROW
USDOC FOR 4320/ITA/MAC/WH/ONAFTA/GWORD
USDOC FOR ITS/TD/ENERGY DIVISION
TREASURY FOR IA (ALICE FAIBISHENKO)
DOE FOR INTERNATIONAL AFFAIRS KDEUTSCH, ALOCKWOOD, AND GWARD
DOE FOR A/S HARBERT AND DAS PUMPHREY
DOL FOR ILAB
E.O. 12958: N/A
TAGS: ENRG EPET ECON MX
SUBJECT: MEXICAN ENERGY OFFICIALS TALK BILATERAL
COOPERATION WITH DOE
REF: A. 05 MEXICO 7037
B. 05 MEXICO 6049
Sensitive but unclassified, entire text.
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Introduction and Summary
------------------------
1. (SBU) A Department of Energy (DOE) delegation and Mexican
officials discussed areas for bilateral cooperation between
the U.S. and the Calderon administration, as well as
trilateral cooperation with Canada where applicable,
including:
-- Biofuels - exploring technologies and applications for
biofuels, with the Mexicans particularly interested in
cooperating on biodiesel;
-- Energy Efficiency - continue standards harmonization and
explore ways to assure greater implementation of energy
efficiency measures and baselines for energy consumption;
-- Nuclear Power - increase public acceptance and train
nuclear engineers;
-- Methane Hydrates - coordinate research;
-- Interconnection - study rights-of-way issues for all areas
of transit: wheels, wires, ships and pipelines to assure most
efficient interconnection;
-- Cross-border Fields - examine unitization and production
sharing issues;
-- Marginal Fields - explore ways to share U.S. technology to
develop marginal fields in Mexico;
2. (SBU) Assistant Secretary of Energy for Policy and
International Affairs Karen Harbert and Deputy Assistant
Secretary of Energy for International Cooperation David
SIPDIS
Pumphrey led a U.S. delegation in a series of meetings with
Mexican energy officials on the margins of the eleventh
meeting of the U.S.-Canada-Mexico North American Energy
Working Group (NAEWG) (NAEWG meeting to be reported septel).
End Introduction and Summary.
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Biofuels
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3. (SBU) Assistant Secretary Harbert suggested it would be
useful for the U.S. and Mexico to discuss ways to encourage
utilization of biofuels and share research and technology for
alternative fuels. More strategically, the U.S. was looking
for ways to help the commercial interests of those working on
alternatives through research and to explore market
opportunities. Director General for Research and Development
at the Mexican Energy Secretariat (SENER), Diego Arjona told
the delegation that Mexico was developing a national biofuels
policy, but he was not sanguine about Mexico becoming a
significant biofuels producer. Brazil was self-sufficient in
energy and an exporter of crops. The U.S. was an importer of
energy, but an exporter of crops. Mexico, however, was an
exporter of energy but an importer of crops. That fact alone
would provide the most significant hurdle.
4. (SBU) Undersecretary for Energy Planning Jordy Herrera
repeated his view (ref A) that while Mexico would develop
ethanol as an alternative fuel, it would not be able to do so
quickly. Herrera agreed that advances in production of
cellulosic ethanol would be necessary before biofuels
progressed beyond the trial stage in Mexico, because any
technology that "requires people to choose between food and
fuel" is not sustainable. Mexico would have more of an
advantage in biodiesel development.
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