By Diego Oré
MEXICO CITY (Reuters) – Mexican president-elect Claudia Sheinbaum Luz Elena Gonzalez, a close ally and former chief financial officer of Mexico City, appointed the new energy minister, tasked with reviving a struggling state oil company and increasing the use of renewable energy sources.
Sheinbaum, a former mayor of the Mexican capital, won this month’s election with an overwhelming majority. This gave the left-wing Morena party its second consecutive presidential victory.
Analysts were generally positive about her appointment, although some raised concerns about her lack of experience in the energy sector.
Gonzalez, who was responsible for the capital’s finances and administration during Sheinbaum’s term as mayor, will also chair the board of directors of state-owned Pemex and serve on the board of directors of national electricity company CFE.
“I reiterate my commitment to serve the Mexican people through an energy policy that guarantees national sovereignty while advancing the energy transition,” Gonzalez said after the announcement on social media platform X.
Her nomination comes as Pemex is burdened by a huge debt, the highest in the world for an oil company, and stagnant production. On the energy front, Mexico’s capacity has struggled to keep up with demand and the country has recently been plagued by sporadic power outages amid record-high temperatures and drought.
“It is very important that someone with so much financial experience has been appointed, given the debt problems of the state energy companies,” said Julia Gonzalez, an energy lawyer.
Elena Gonzalez, an economist, is also seen as close to Sheinbaum, and less of an ally of outgoing President Andres Manuel Lopez Obrador, suggesting some elements of energy policy could differ under the new administration.
“The appointment of Luz Elena Gonzalez as Energy Secretary underscores the importance that Sheinbaum will give to that portfolio, with an emphasis on sustainability and finance,” said political analyst Antonio Ocaranza.
For Miriam Grunstein, an energy analyst, Gonzalez will bring a fresh perspective to the role, but her lack of experience could be a problem.
“The risk of someone who doesn’t have visibility in the industry is that he or she may not have the requisite experience to lead an important institution like the Department of Energy,” she said.
Sheinbaum also named other members of her future cabinet before taking office in October, including Jesus Esteva as her transportation secretary. He previously headed Mexico City’s public works department.
Other ministers announced included Raquel Buenrostro as head of the Federal Comptroller’s Office, physician David Kershenobich as Health Minister and Edna Vega Rangel as Minister of Agricultural Development.
Buenrostro is currently Minister of Economy in the cabinet of outgoing President Lopez Obrador.
The Mexican peso fell 0.54% immediately after the announcements and the country’s main stock exchange fell 0.5%.
Last week, Sheinbaum announced the first six candidates for her Cabinet, including former Foreign Minister Marcelo Ebrard as Economy Minister and diplomat Juan Ramon de la Fuente as Foreign Minister.
(Reporting by Diego Ore, Stefanie Eschenbacher and Adriana Barrera; Writing by Kylie Madry and David Alire Garcia; Editing by Stephen Eisenhammer and Josie Kao)
