How Rick Perry’s Energy Agenda Will Fix The Economy And Immigration

header-hoover-institution-fellows1-1By Alex Gonzalez

In an interview last week, Gov. Rick Perry said that he believes that an Energy Revolution “in North America is the best path to fix our chronic unemployment and laggard economic growth.

…I believe that with all of my heart that our best days are ahead of us. We’re a few policy decisions away and obviously a leadership change at the top. It goes back to two areas in particular, energy policy and tax policy, expanding North American energy resources, there’s more known resource reserves in Canada, the United States, and Mexico than in Russia and Saudi Arabia “ – Gov. Rick Perry

And he is right.

In a world full of bad news in the Middle East and Europe, North America has been having quite a good run lately. Energy production is off the charts in the United States and Canada, and much-needed political and economic reforms are steadily advancing in Mexico, while fewer Mexicans are moving to the United States. While illegal immigration remains a hot topic in the United States, a plummeting birth rate in Mexico over the past 50 years has already shown up in much lower net migration rates since 2007.

Although Mexico’s energy production has fallen over the past decade, it remains the 10th-largest oil producer in the world. Furthermore, the three North American countries together account for almost a quarter of the world’s oil and gas production. Mexico also has made dramatic strides since the North American Free Trade Agreement was passed in 1993. A majority of its population is now middle class, and President Enrique Peña Nieto has made steady progress on major reforms in the energy sector.

In Congress, The United States is edging towards an historic agreement to swap crude oil with Mexico. The deal is important as it brings some relief to US producers struggling with a light oil glut at home and for Mexican national oil company, Pemex, which is hoping to mix the lighter crude coming out of US shale fields with its heavier blend. However, the arrangement is not just about the relationship between the US and Mexico. It’s also about broader North American energy integration.

“It’s time to harmonize North America’s energy trade. President Reagan authorized oil exports to Canada 30 years ago – a decision that contributed to lower consumer fuel prices and greater domestic energy production. Mexico deserves the same treatment. This is an opportunity for Congress and the administration to work together for the common good. Part of our commitment to a multifaceted national energy strategy means building ties with our North American neighbors through increased collaboration on energy projects and the movement of energy products across our borders” – Sen. Murkowski, Chairwoman of U.S. Senate Committee and Energy and Natural Resources.

The oil swap with Mexico not only makes economic sense but also political sense as the North American region becomes increasingly integrated on energy, as Rick Perry argues. The North American Free Trade Agreement (NAFTA) celebrated its 20th anniversary last year with some fanfare but there is still more to be done to bring the US, Canada, and Mexico closer together. Thus, the free trade in crude oil between the three nations would be a positive step.

Horizontal drilling and hydraulic fracturing are unlocking massive shale plays across much of the United States, while new technologies (and high oil prices) are making the Canadian oil sands more profitable than ever.

Moreover, this energy revolution in North America are direct benefits for American workers and the U.S. Economy. Research by Mark P. Mills from Manhattan Institute shows that:

An affirmative policy to expand extraction and export capabilities for all hydrocarbons over the next two decades could yield as much as $7 trillion of value to the North American economy, with $5 trillion of that accruing to the United States, including generating $1–$2 trillion in tax receipts to federal and local governments. Such a policy would also create millions of jobs rippling throughout the economy. While it would require substantial capital investment, essentially all of that would come from the private sector. 


The correlation between the energy reforms in Mexico and shale revolution in the U.S. will yield positive $2 trillion in the next 20 years. This economic energy boom will result in jobs generated in both side of the Rio Grande. And Gov. Perry knows this free trade job market. For example, last year he argued that:

“The net migration into the U.S. from Mexico last year was zero. If exploration and other energy fields open, “You’ll have a mass migration of those that came here to work who will go back into Mexico and pursue those jobs”

Additionally, in conference on North America Energy Independence Gov. Perry also underscored that

“This is the start of a discussion to create a North American energy policy that can change the future of the world, and Mexico is going to be at the epicenter of that. The key to this hemispheric transformation is the proposal by the Mexican government to open the state-owned oil company, Pemex, to foreign investment”
shaleConsequently, Gov. Perry is knows how this big economic regional reforms and energy revolution will change the job market in both Mexico and the U.S. Mexico’s rich deposits in shale fields sit idle—the same geological formations which have unleashed torrid growth in jobs and wealth for Texas, and the United States at large.

In forum In Houston last March oil companies and academics also projected that Mexico’s renaissance could open the floodgates to as much as $1.2 trillion in investment benefiting both sides of border. And Texas could be one of the biggest beneficiaries on the north side.

BBVA Compass predicted this month that the overhaul and subsequent economic expansion could add more than 200,000 Texas jobs, about $3.5 billion in state revenue and $45 billion to Texas’ gross domestic product. Texas could be one of the biggest beneficiaries on the north side. BBVA Compass predicted this month that the overhaul and subsequent economic expansion could add more than 200,000 Texas jobs, about $3.5 billion in state revenue and $45 billion to Texas’ gross domestic product.

As for illegal immigration,  Illegal Immigration from Mexico will continue to decrease as the economy of Mexico keeps shifting into a middle-economy and as Gov Perry argues, the energy revolution will create high-paying jobs on both sides of the border. A $2 trillion economy generated by this “energy revolution” will create thousands of jobs associated with oil industries in both nations.   plummeting birth rate in Mexico suggest that Mexico will only have workes to supply its own labor pool. Moreover, China already passes Mexico as the Top Source of New U.S. Immigrants.

So Rick Perry has a real strong economic regional energy message for North American that in fact could solve the “hot issue” of immigration and finally bring energy independence to North America. And he has always been a visionary on free trade. Since 2000, when he became governor, he has always pursued regional economic trade harmonization between the three nations of North America. And in It is this global market, so often controlled by cartels and unstable governments, the North America’s energy revolution finally free the U.S. from “hostile” nations in the Middle East. and Gov. Perry is the only Republican candidate  with this vision.

MeAlex Gonzalez  is a political Analyst and Political Director for Latinos Ready To Vote. Comments: or @AlexGonzTXCA r




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