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Page added on September 8, 2012
Mexico’s outgoing president calls for oil reform
Mexico, the world’s seventh-largest oil producer, needs to change its oil exploration laws to boost output by allowing foreign oil firms greater access, outgoing President Felipe Calderon said on Saturday.
Mexico’s oil industry is dominated by state monopoly Pemex and private companies have limited access to the market. The country faces a key test as production has fallen sharply in recent years and Pemex risks becoming a net importer of crude within a decade.
Calderon, who will hand over power to President-elect Pena Nieto at the end of the year, called on the new administration to reform and modernise the industry. Nieto has promised “bold steps” to boost outside involvement in oil exploration.
“I hope that the new government will have not only the political will but also political support … to make such an important change in our law and in our constitution,” Calderon told a briefing at an Asia-Pacific Economic Cooperation (APEC) summit in the Russian city of Vladivostok.
Pemex, created in 1938 when the country’s oil industry was nationalised, made a new light crude oil find in the Gulf of Mexico in August, which, if confirmed, could provide between 4,000 and 10,000 barrels per day. Mexico’s oil output is currently 2.5 million barrels per day.
“Is that enough for the country? I don’t think so,” said Calderon. “I still believe that Mexico requires an important reform in order to allow Pemex to modernise its processes, to modernise its technology, to modernise its know-how, getting the experience of global companies.”
To discover new fields and increase output, Mexico should consider allowing Pemex to create joint ventures with foreign companies, acquiring technology and know-how from companies like Norway’s Statoil and Brazilian Petrobras, Calderon said.
Calderon’s presidential stint ends in December and Nieto, who has pledged a raft of fiscal, labor and energy reforms, will be sworn in on Dec. 1.
“I hope that the new government will be very rational,” Calderon said, adding that the budget deficit of 0.4 percent of gross domestic product is set to be brought to zero in the next few years.
6 Comments on "Mexico’s outgoing president calls for oil reform"
MrEnergyCzar on Sat, 8th Sep 2012 10:06 pm
Cantarell is in terminal decline….
MrEnergyCzar
Kenz300 on Sat, 8th Sep 2012 11:24 pm
Every current oil exporting nation is having trouble with increasing internal demand and declining oil fields. How many will be exporting oil in 10 years?
Gale Whitaker on Sun, 9th Sep 2012 1:22 am
currently Mexico uses the income from PEMEX to pay it’s bureaucrats. When the oil stops, the income stops and the bureaucrats grab a jug of water climb the fence that separates Mexico from the U.S. I think the U.S. government should do everything it can to prevent chaos in Mexico. Chaos in Mexico will be bad for both countries.
BillT on Sun, 9th Sep 2012 1:56 am
Be patient, we are in the process of annexing Mexico as the 51st state.
DMyers on Sun, 9th Sep 2012 2:05 am
Calderon has obviously read or heard about the Maugeri (Harvard) report. He imagines this great harvest of petróleo in the USA and imagines Mexico can surely replicate that with equivalent technology. Frak Mexico! That may be the best interpretation.
Bad idea, Felipe. Mexico is a country that can survive a return to the Stone Age. Put your eggs in that basket, hermano.
DC on Sun, 9th Sep 2012 3:39 am
Mexico can only increase production is there is actual oil to process. If thats the case, is anything but clear. Sure, allowing the globalist oilcos in might allow mexico to slow the rate the decline somewhat, but I wouldnt expect much more than that. Fact is, the only thing that will rescue Mexican oil production, is finding another Cantarell, which is pretty unlikely. Besides, the globlalist oil majors are probably paying off Calderon to make that pitch anyhow. The majors cant ‘save’ Mexico, but they sure help drain that country of what oil revenue is does have left.