Cisco
Ultra Nomad
Posts: 4196
Registered: 12-30-2010
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Mexican President Proposes Opening Oil Industry to Private Firms
"Mexico’s president has proposed a historic shift in the country’s state-run oil industry, potentially paving the way for foreign multinationals to
gain a share of the profits from Mexico’s oil. In an address Monday, President Enrique Peña Nieto proposed letting private firms enter profit-sharing
contracts with Mexico to drill for oil and gas. The shift would require changes to Mexico’s Constitution. But Peña Nieto insisted it would not amount
to privatization.
Mexican President Enrique Peña Nieto: "With this reform, Mexican Petroleum and the Federal Electrical Confederation (CFE) as companies are 100
percent the property of the nation. Pemex and the CFE, and I say this categorically, are not for sale nor up for privatization. This reform looks for
a strengthening and modernization to once again allow them to become leading companies and fulfill their mission to benefit society.""
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bajacalifornian
Super Nomad
Posts: 1117
Registered: 9-4-2010
Location: Loreto/Lopez Mateos/Rosarito
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Let's Get Ready To Rumble!!
American by birth, Mexican by choice.
Signature addendum: Danish physicist — Niels Bohr — who said, “The opposite of one profound truth may very well be another profound truth.
Jeff Petersen
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vandy
Senior Nomad
Posts: 538
Registered: 10-10-2003
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Let's team up with PEMEX!
Great opportunity for a private company!
Pemex is the only big oil company in the world that can produce oil for $7 per barrel, sell it for $100, and still lose money and be $100 Billion US
in arrears.
Kind of like investing in the US Post Office...
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vandy
Senior Nomad
Posts: 538
Registered: 10-10-2003
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I looked online for data to back up my statement.
It seems Pemex's pension plan alone is $100 Billion US in the hole.
From The Economist, August 8, 2013
http://goo.gl/mocPSK
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Bajahowodd
Elite Nomad
Posts: 9274
Registered: 12-15-2008
Location: Disneyland Adjacent and anywhere in Baja
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Pena Nieto's coyness comes from two sides. First, when Vicente Fox proposed allowing foreign companies in back in 2008, there were near riots.
Second, even today, polls I've read recently still show that some 65% of Mexicans don't want foreign involvement in their oil.
Thing is, that right now, the Mexican economy is providing for way more folks to have decent jobs. Pemex, which is the number one or number two
supplier of crude to the US, is running out of currently available reserves.
Fact is that Mexico has huge reserves in the Gulf that require present day deep water technology and equipment to tap. Pemex has neither.
So, at least the door is ajar for the foreign involvement.
Same goes for electricity. Pena Nieto has also proposed allowing private firms to generate and provide electricity. They would not necessarily be
foreign firms. But since Mexico has among the highest worldwide electricity rates, I just don't understand why their citizens would be opposed to
competition to CFE from private firms.
It is estimated that there are enough coalition votes in the government to get this done. But since it actually requires a constitutional amendment,
some 17 states would have to ratify it. Good night.
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