Sheinbaum's pick for energy minister suggests more pragmatic approach

Mexico's president-elect Claudia Sheinbaum has appointed a close political ally and financial expert, Luz Elena González, to be her energy minister, signaling a potential shift towards a more pragmatic approach to the sector. 

When Sheinbaum was mayor of Mexico City, González was her finance secretary from 2018. She has no experience in the energy industry.

In contrast to Rocío Nahle, an outspoken political firebrand who was energy minister during most of the current government, González has a low profile and is expected to adopt a more technocratic style of management.

"Luz Elena González has experience managing large budgets and she is seen as a disciplined official without the political approach" of Nahle, Pablo Zárate, senior managing director at FTI Consulting, told BNamericas.

Sheinbaum will sit on the boards of state-owned electricity company CFE and national oil company Pemex, which has more than US$100bn in debt and whose bonds are rated in junk territory.

"Appointing someone who is much more into finance than energy shows that Claudia Sheinbaum is receptive to the feedback from Wall Street that the Mexican government is receiving about Pemex," Zárate said. 

"She is placing the emphasis on making sure that Pemex transitions into a more financially sustainable company." 

One of the first duties of González as energy minister will be to appoint a new CEO for Pemex. 

"If we get someone at Pemex who has credibility in the global financial arena, and who is aligned with this new perspective, we will have the makings of a very interesting team. It will be completely different to what we have had in the past," Zárate said.

González is a graduate in economics from Mexico’s UNAM university and holds a master's in urbanism from the University of Catalonia.

"I reiterate my commitment to serve the public of Mexico, via an energy policy that will continue to guarantee national sovereignty and at the same time advance in the energy transition," she wrote in a post on X after being appointed.

AMEXHI, the association of hydrocarbon operators, welcomed the appointment and said its members aimed to work together to maximize the benefits of their exploration and production contracts for the development of Mexico.

Sheinbaum takes office October 1.