By Diego Oré
MEXICO CITY (Reuters) -Mexican president-elect Claudia Sheinbaum appointed Luz Elena Gonzalez, a close ally and former chief financial officer of Mexico City, as the new energy minister. Her job was to revive an ailing state oil company and increase the use of renewable energy sources.
Sheinbaum, a former mayor of the Mexican capital, won a landslide election this month, giving the left-wing Morena party its second straight presidential victory.
Analysts were generally positive about the pick, although some raised concerns about her lack of energy experience.
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.
Her nomination comes as Pemex is crippled by massive debt, the world’s highest for an oil company, and stagnant production. On the energy front, Mexico has struggled to keep up with demand and has recently been plagued by sporadic power outages due to 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 a close ally of Sheinbaum and less of an ally of outgoing President Andres Manuel Lopez Obrador. This suggests that some elements of energy policy may differ under the new government.
“The appointment of Luz Elena Gonzalez as Secretary of Energy underlines the importance Sheinbaum will attach 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 position, but her lack of experience could be an issue.
“The risk of someone who doesn’t have visibility in the sector is that he or she may not have the experience required to lead an institution as important as 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 minister. He previously headed Mexico City’s public works department.
Other announced ministers included Raquel Buenrostro as head of the federal control office, Dr. David Kershenobich as health minister and Edna Vega Rangel as agricultural development minister.
Buenrostro is currently Minister of Economy in the cabinet of outgoing President Lopez Obrador.
The Mexican peso fell 0.54% and the country’s main stock exchange fell 0.5% immediately after the announcements.
Last week, Sheinbaum named the first six choices 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)
