Mexico – PEMEX Privatization Against National Interest

December 17, 2013

By Padmini Arhant 

Mexico Senate approval on oil reform bill inviting United States energy firms (Exxon Mobil and Chevron) to drill for crude has sparked citizens protests with petition bearing one million and six hundred thousand signatures against government action.

The largest oil company Petroleos Mexicanos (PEMEX) under full state ownership up until now opened for private profit sharing after 75 years claiming the position as a requirement to boost production and revenue.

Mexico with substantial untapped reserves ranking second behind the Arctic Circle targeted in foreign monopoly influencing Mexican political system through neo liberal economic policy.

Since previous privatization in the late twentieth century led to exploitation and foreign companies excess control depriving the nation from due economic benefits, the people concern over repeat event in PEMEX deal is legitimate and deserves political diligence prior to proceeding with erroneous decision.

The proposal allowing energy companies to explore and extract oil and gas with investments to maximize capability in crude oil refinery and output to offset current 40% imports for domestic consumption might be the reason behind the ruling and opposition parties consensus on the contentious legislation. 

However, PEMEX supporting the Mexican economy generating one-third national income could seek other possibilities to enhance productivity without compromising proprietary rights and profitability.

The lack of technology and funding being the two major factors attracting offshore partnership, these issues could be addressed with purchase of technology and hiring relevant expertise for training local workforce. 

As for capital infusion, providing incentives to domestic investors and raising public shareholding could be the preliminary step towards protecting national assets and any additional financing supplemented with preference shares subscription offered to prospective international buyers safeguarding equity for continuous growth and development.

Besides government loans, the budget allocation to national enterprise PEMEX towards research and innovation for lucrative returns would deliver anticipated outcome in the economic perspective.

The state corporation compliance with safety ordinance, security measures and environment standards are paramount to sustain long term operation.

Mexico government pledge to climate treaty during COP 16 in Cancun exemplified in action with natural energy options viz. solar, wind and hydropower projects could cover inadequacy contemporarily necessitating overseas supply to meet national demand.

Subsequently adopting clean energy programs would be viable considering volatility in oil prices emanating from diverse unpredictable events.

Despite fuel abundance, Mexico reliance on external sources due to monetary and technological constraints could be overcome with appropriate adaptations while retaining state possession. 

Mexican President Enrique Pena Nieto heading the ruling Institutional Revolutionary Party (PRI) and the opposition National Action Party (PAN) agreement ignoring overwhelming public rejection on this matter might contribute to political setbacks and economic liability following precedence.

The Democratic Revolution Party (PRD) solidarity with civil society against government plan is prudent given Mexico’s past economic losses from foreign acquisitions in the 1980’s and 1990’s proved unfavorable en masse. 

Mexican lawmakers in the lower house exercising caution and careful evaluation of the law involving the last remaining national treasure with majority disapproval could prevent surrender of sovereignty and consequential subjugation in the voluntary liquidation.

Furthermore, Mexican legislators honoring republic will and decline authorization to the controversial PEMEX denationalization  in consideration of pragmatic solutions would be promising for the country.

Hopefully reason and rationale would prevail in recognition of national pride reflective in PEMEX.

Good Luck to Mexican citizenry in defending national cause for prosperous future! 

Wishing Mexico peaceful, progressive and phenomenal New Year and beyond.

Peace to all!

Thank you.

Padmini Arhant

 

 

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Written by Padmini Arhant · Filed Under Featured, International Politics, North America 

Comments

One Response to “Mexico – PEMEX Privatization Against National Interest”

  1. Sunshine on September 21st, 2015 4:44 am

    Hey very interesting blog!

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