On a recent scorching afternoon in his home state of Tabasco, the president of Mexico celebrated his government’s latest triumph: a new oil refinery.
Though not yet operational, President Andrés Manuel López Obrador hailed the refinery as a centerpiece in his grand campaign to secure Mexico’s energy independence.
“We ignored the sirens’ song, the voices that predicted, in good faith, perhaps, the end of the oil age and the massive arrival of electric cars and renewable energies,” he told the cheering crowd.
Driven by Mr. López Obrador’s long-held goal to wrest control of the energy sector from private companies and allow state firms to dominate the market, the government is undermining efforts to expand renewable power and staking the nation’s future on fossil fuels.
The policy is central to Mr. López Obrador’s ambition to reverse what he sees as corrupt privatization of the industry, guarantee Mexican energy sovereignty and return the country to the glory days when oil created thousands of jobs and helped bolster the economy.
To this end, Mexican authorities are using the might of their regulatory agencies to keep renewable firms out of the market, blocking their power plants from operating, and instead propping up fossil fuel-powered plants owned or run by the state, according to interviews with more than a dozen former government officials, analysts and energy executives.
As a result, Mexico will almost certainly fail to meet its pledge to the world to reduce its carbon output, according to analysts. The country has also potentially jeopardized billions of dollars in renewable investment and created another source of tension with the Biden administration, which has made combating climate change a key pillar of its foreign policy agenda.
“People say: ‘how is he going to fulfill his commitments to climate change?’ And I always tell people, ‘well, he doesn’t care,’” Tony Payan, a Mexico expert at the Baker Institute for Public Policy at Rice University, said of Mr. López Obrador. “He’s an oil man.”
Mr. López Obrador has argued that while the transition to renewable energy will happen eventually, Mexico is simply not ready.
“That technological advancement will become a reality,” he said during the refinery inauguration. “To get there, we need more time.”
The government has not completely abandoned renewable energy. It plans to spend about $1.6 billion to build a giant solar plant in northern Mexico as well as refurbish more than a dozen state-owned hydroelectric plants.
Mexico generates nearly 80 percent of its energy from fossil fuels, while renewables and nuclear power provide the remaining 20 percent, according to government figures.
For Mexico, sovereignty over energy production holds a special place. In the 1930s, President Lázaro Cárdenas seized the assets of foreign oil firms, including U.S. corporations, accused of exploiting Mexican workers and nationalized the industry, an iconic event celebrated as a national holiday.
Mr. López Obrador, who hails Mr. Cárdenas as an inspiration, has made regaining a near monopoly over energy for the state a top priority.