BajaNomad

Privatization of PEMEX

villadelfin - 7-17-2008 at 08:24 AM

In La Paz, as no doubt elsewhere, the out party has purchased radio airtime of two-three minutes, earnestly urging the citizens not to allow the privatization of PEMEX, citing the selling of national heritage (patrimonio) among other things.

The party in power assures citizenry that they should go along with the plan and it will result in a stronger, more economically viable country.

Why is it being opposed? Will allowing foreigners to invest in PEMEX help Mexico or will it hurt Mexico?
http://www.questia.com/googleScholar.qst?docId=5000550985

http://www.coha.org/2008/06/demerits-of-pemex-privatization/

http://banderasnews.com/0804/edop-pemexdebate.htm

David K - 7-17-2008 at 09:54 AM

Gee, here in the USA we have BP gas stations (owns ARCO too) 'British Petroleum' and SHELL (Royal Dutch Shell)... perhaps more?

Take the government out of PEMEX, by all means... Mexico's oil reserves are not being tapped and the squeeze is being felt... just like here (we have many years reserves and untapped oil fields). Because our government restricts the oil companies (yet takes more profit per gallon of gas than the companies do) to get oil from our own territory, we must import 3/4 of our needs... really STUPID! Get the government out of the oil business!

comitan - 7-17-2008 at 10:39 AM

I don't understand what the Mexican gov. is thinking, are there any foreign oil companies stupid enough to invest in Mexican oilfields and refineries When the next president could be the one who would take them over and they would lose all of their investment. (AMLO)

bajalou - 7-17-2008 at 12:27 PM

Some interesting reading about Mexico's purchase of the American Oil companies assets in the late 30's

http://www.elbalero.gob.mx/pages_kids/history/contemporary/n...

http://www.clas.berkeley.edu:7001/Events/fall2002/09-12-02-A...

guadalupe - 7-17-2008 at 01:20 PM

I think that it would be a good idea to let private companies run the oil business in Mexico as long as the money goes to Mexico and is not stolen from us. Government does not know how to run a business. What would happen to the price of gasoline?

Hook - 7-17-2008 at 01:22 PM

I doubt Calderon would float this politically charged issue as a trial balloon without having received some assurances from multinational oil companies that they WOULD be interested in investing in Pemex for the right terms. Pemex could easily remain independent and contract out to foreign interests in areas they need.

Bajaboy - 7-17-2008 at 01:24 PM

I can tell you...the price of gasoline would rise dramatically to match market prices.

Zac
Quote:
Originally posted by guadalupe
I think that it would be a good idea to let private companies run the oil business in Mexico as long as the money goes to Mexico and is not stolen from us. Government does not know how to run a business. What would happen to the price of gasoline?

David K - 7-17-2008 at 01:37 PM

The price would be determined by the market... however, like in the US the government will think it is a candy store and add taxes to the price...

Oil companies make 10 cents a gallon and the government makes 50 cents!

Then the government will tell the oil companies that they must import the oil they sell because they won't allow drilling in their own country!

Because that imported oil is expensive and the people will be mad, the government will hold hearings to ask why, so the people will not blame the government!

The government biased media will not mention that the government makes 5 times more profit than the oil companies, nor do they do a thing to change oil to gasoline other than to complicate it with regulations and insist on special blends that cannot be sold across state lines... which drives up the costs in the state that uses more.

Government will then pay farmers to not grow food crops, but instead to grow corn to make ethynol... to make the people think the government cares about fuel imports. This naturally causes food shortages and high food prices... and ethynol is more expensive to make than any good it does to the fuel shortage.

Punishing people with high prices because the government messes with free enterprise and then to blame the companies that actually produces the gas we need is insane.

Do you think Mexico will be smart enough to allow free enterprise to obtain the oil (safely) and sell the product without loading on tax after tax?

[Edited on 7-17-2008 by David K]

CaboRon - 7-17-2008 at 02:50 PM

Quote:
Originally posted by Bajaboy
I can tell you...the price of gasoline would rise dramatically to match market prices.

Zac

Quote:
Originally posted by guadalupe
I think that it would be a good idea to let private companies run the oil business in Mexico as long as the money goes to Mexico and is not stolen from us. Government does not know how to run a business. What would happen to the price of gasoline?


As long as they don't screw it up like they did with the phone company ..... there was a gov't monopoly which they converted into a sole ownership private monopoly ... what was gained ???? probably a whole lot by those involved in the transaction, and the Mexican people ? Not A Peso!!

CAboRon

villadelfin - 7-17-2008 at 03:03 PM

David K thanks for posting those older photos. Sure explains why we see an occasional flying A or 76 sign still around. Now, about those Thrifty Drug Store ice cream parlors..

Bajaboy - 7-17-2008 at 04:51 PM

So DK-let's say for example that oil production in Mexico was sold to the highest bidder and that company was free to do as it wishes. What do you suppose the price of gasoline would be?

The company's duty is to maximize profits for its shareholders. So regardless of taxation, the company will sell gasoline at the highest price it can. In other words, if the price of gas in San Diego is $4.50, the price in TJ most likely would be $4.50 regardless of the taxes added to a gallon. This is pure business economics. The price of gasoline is fairly inelastic and thus consumers will pay for it regardless of price.

One final thought...if taxes are so bad for the gas companies, why are they making record profits? And why should I be concerned? I see your argument but don't understand how it affects supply and demand. I mean we used to make textiles in the US as well but found it was cheaper to import them from China. How is that any different than importing cheaper oil?

Please inform.

Zac
Quote:
Originally posted by David K
The price would be determined by the market... however, like in the US the government will think it is a candy store and add taxes to the price...

Oil companies make 10 cents a gallon and the government makes 50 cents!

Then the government will tell the oil companies that they must import the oil they sell because they won't allow drilling in their own country!

Because that imported oil is expensive and the people will be mad, the government will hold hearings to ask why, so the people will not blame the government!

The government biased media will not mention that the government makes 5 times more profit than the oil companies, nor do they do a thing to change oil to gasoline other than to complicate it with regulations and insist on special blends that cannot be sold across state lines... which drives up the costs in the state that uses more.

Government will then pay farmers to not grow food crops, but instead to grow corn to make ethynol... to make the people think the government cares about fuel imports. This naturally causes food shortages and high food prices... and ethynol is more expensive to make than any good it does to the fuel shortage.

Punishing people with high prices because the government messes with free enterprise and then to blame the companies that actually produces the gas we need is insane.

Do you think Mexico will be smart enough to allow free enterprise to obtain the oil (safely) and sell the product without loading on tax after tax?

[Edited on 7-17-2008 by David K]

David K - 7-17-2008 at 06:50 PM

The oil imported is not cheaper Zac...

Labor unions here is what destroyed the textile industry in the US...

Naturally we all have various points of view on these things.

Let's not get too sidetracked... the price of fuel will move to what the market dictates and what the government tacks on...

Thanks to President Bush announcing the freeing up of drilling restrictions the other day, the oil exporters see that we won't lay down and take their prices much longer!

The price of crude oil has just taken the BIGGEST drop in history... the past couple of days. Unfortuately, the left-leaning congress here also must lift the ban... and it doesn't serve them politically to do so until after the election...

Vote for making America better, more freedom, less dependant... and you know what side will raise taxes, restrict freedom, nominate ACLU lawers to positions of power, have America apologize to two-bit dictators... The people are what is great about America and the party that trusts the people to do what they want with their own money is a far better choice than the party who wants to take more of your money to make government bigger.


Okay, I am off the soap box... and on vacation.. Hooray!

David K - 7-17-2008 at 06:52 PM

Quote:
Originally posted by villadelfin
David K thanks for posting those older photos. Sure explains why we see an occasional flying A or 76 sign still around. Now, about those Thrifty Drug Store ice cream parlors..


You are very welcome!

Those photos and a lot more can be found in the links on my homepage: http://vivabaja.com

The history of Baja is fascinating!

Von - 7-17-2008 at 06:54 PM

Killer pics David man those where the good old days!

CaboRon - 7-19-2008 at 04:07 PM

Quote:
Originally posted by comitan
I don't understand what the Mexican gov. is thinking, are there any foreign oil companies stupid enough to invest in Mexican oilfields and refineries When the next president could be the one who would take them over and they would lose all of their investment. (AMLO)


Ain't that a fact .............

CaboRon

rpleger - 7-19-2008 at 10:22 PM

Now...How does the privatization of PEMEX benefit me, a resident of Mexico...All citizens and residents of Mexico are shareholders of PEMEX...

CaboRon - 7-20-2008 at 05:55 AM

Quote:
Originally posted by rpleger
Now...How does the privatization of PEMEX benefit me, a resident of Mexico...All citizens and residents of Mexico are shareholders of PEMEX...


It benefits you in that PEMEX desperately needs development funds, or this beast is crashing .... check out the stats on yearly output ... it may suprise you.

Maintenance and R & D are the key to revitilizing PEMEX

CaboRon

Here is a llink to a discussion on the subject that has been going on for a while now ....

http://forums.bajanomad.com/viewthread.php?tid=32338



[Edited on 7-20-2008 by CaboRon]