Monday, July 02, 2012

The election and Pemex

An article in the Financial Times sees the Enrique Peña Nieto's election as a boost for oil.

Mr Peña told the Financial Times last year in an interview that Pemex “can achieve more, grow more and do more through alliances with the private sector”. He added: “Different mechanisms could be explored to ensure an involvement for the private sector in its alliance with Pemex . . . Brazil is one example.” 
The changes are unlikely to be radical. But Mr Peña is the first Mexican president to talk openly about the need to reform Pemex and bring in foreign capital.

But this isn't actually true. Felipe Calderón did the same, saying that Pemex needed to take on foreign partners for exploration. However, he could not get his legislation passed in Congress. We'll have to wait and see whether Peña will have enough votes to overcome the combination of nationalist and leftist opposition to anything that is perceived as privatization.


Otto 9:11 AM  

To say PRI and Pemex have a long and friendly history is the understatement of the year. If you're going to mention this combo, some reference to the year 2000 is necessary.

I don't have anything against EPN (and not fond of the only other alternatives in this election, so as head of state he'll do I suppose), but many stalwarts of the party behind him must be licking their collective lips and thinking about the 12 lost years of graft they can now play catch-up on.

Greg Weeks 9:12 AM  

Definitely true, but foreign partnerships and clientelism aren't mutually exclusive.

Anonymous,  9:29 AM  

Not mutually excusive is correct. However, most economists would consider a state-owned monopoly a more fertile ground for it.

JHD 4:46 PM  

Judging by reports, "wait and see" may need to apply to EPN's "win," first.

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