Disclaimer: We are not energy industry specialists and have no particular expertise in this field. We’re just taxpayers who have been watching the Pemex train wreck unfold in slow motion for many years.
Update: A counterpoint to this post is now posted here.
On April 13, 2016, Mexico’s Finance Ministry (SHCP) announced a package of cash injections and tax relief measures worth approximately US$4.2 billion for state-run oil and gas monopoly Petróleos Mexicanos (Pemex). Officials pointedly emphasized that the infusion did not absolve the enterprise from addressing its inefficiencies and debt obligations. The behemoth company has never been viewed as a lean, agile efficiency machine, so a little extra in its allowance from the federal government might once have been considered routine. This time, though, the move adds fuel to our suspicion that the long-time flagship of national sovereignty may be coming to the end of its life as an oil production company. Continue reading What will become of Pemex?→
We are into late December here at the Mexico Business Blog Global Campus, which is either a sprawling, eco-friendly complex in central Mexico City or a fortified underground lair carved deep into the Ajusco mountain, depending on our temperament each day. Virgin of Guadalupe Day has come and gone already, which means most office workers’ minds here in Mexico are now fully focused on the customary end-of-year lunches, dinners and receptions that are taking the place of any kind of work that might otherwise have been performed or at least thought about. We, of course, are maintaining our usual stringent productivity standards but before we head out to the next punchbowl-centric holiday soiree, we thought we would comment briefly on some things that happened in Mexico over the past year. Continue reading Where Mexico is at as 2014 comes to a close→
In a post earlier this year on President Peña’s energy reform proposal, we predicted that the leftist opposition PRD’s efforts to organize a nationwide referendum calling for the repeal of the reform legislation would suit Mr. Peña just fine, as it would lead to indefinite fiddling around with no results. And now, just as it fuzzily appeared in our crystal ball, eternal caretaker of the fatherland Andrés Manuel López Obrador (AMLO) is working hard to make us look smart. On August 21, a group of high profile intellectuals from academia and the creative arts presented a letter to the media calling upon the country’s leftist political forces, led by the PRD and Mr. López Obrador’s new Morena party, to unify behind a single referendum in order to maximize the potential for repeal of the reform. The group included long-time AMLO supporters such as writer Elena Poniatowska and other stalwarts of the intellectual left. Continue reading Lopez Obrador scuttles unified reform referendum proposal→