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. 
 
------------------------ 
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. 
 
-------- 
Biofuels 
-------- 
 
¶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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