A Closer Look at Peña’s Energy Reform
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  • Jacksonian_Libertarian

    Let me get this straight, first you say:
    “Mexican President Enrique Peña Nieto unveiled a proposal to reform his country’s state-owned and grossly mismanaged oil and gas monopoly Pemex last week”
    Then you say:
    Encouragingly, Pemex isn’t sitting idly by while politicians wrestle over its fate. The company recently announced plans to create a new company that will expand production into US shale oil and gas fields, as well as deepwater operations in America’s gulf waters. That project, combined with the reforms currently on the table, has a real shot at igniting a Mexican, and in turn a North American, energy boom.
    So which is it? Either Pemex is a grossly mismanaged oil and gas MONOPOLY, or it’s a competent well managed company capable of COMPETING with the creative geniuses that have been duking it out, at the forefront of the oil shale fracking revolution. It can’t be both.
    In my opinion, Pemex has no chance of competing with American oil companies, in the US or anywhere else, without Mexican Government protection of its Monopoly. Lets face facts, Pemex can’t even develop its own resources in Mexico, and it’s going to suddenly develop the competence to develop resources elsewhere? Common sense alone, should tell you this is laughable.
    Mexico made a terrible mistake when they stole…uh…nationalized the oil industry, and now they lack the political will to admit their stupidity and undo their mistake.

  • tarentius

    Are these articles being written by high school students for summer credit? Pemex has absolutely no technical expertise in fracking or in deep water drilling. Is it going to get its employees some kind of Vulcan mind meld to give them immediate expertise and somehow magically acquire the technology and sophisticated drilling equipment to expand production into US shale fields and in the deep water of the Gulf?
    Let’s get real here. Pemex is a bloated, corrupt dinosaur that can’t even drill new fields successfully in much of Mexico. Passing a constitutional amendment which will not allow a foreign company production sharing rights will not attract the oil and gas companies with the know-how in fracking or deep water drilling into Mexico.

  • ljgude

    Let’s face it – this picture of President Pena looks like a shot of a pained Desi Arnez trying to explain something utterly inexcusable to Lucille Ball. On a slightly more serious note I watched Mugabe completely destroy his economy including gold mining. After that what Chavez managed to do to his own oil business looked pretty familiar. So Pena understands the problem – if he wants the expertise the experts have to get a cut, but naturally that would be immoral. The resource belongs to the people of Mexico and letting the capitalists steal it would be the worse possible outcome even if the stratagem produces greater returns for Pemex. It is the PRINCIPLE of the thing he shouted and stamped his little foot.

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