Mexico Senate passes legislation to overhaul oil industry

Rival political parties back measures they hope would streamline the state oil company and boost production. Critics fear the bill could lead to privatization.

Reporting from Mexico City — The Mexican Senate on Thursday overwhelmingly approved an energy reform package designed to modernize the state-owned oil monopoly and boost declining production.

The seven measures, watered down from changes proposed by conservative President Felipe Calderon, won backing from the three main political parties in the Senate. Prospects appear good for passage in the lower house of Congress as early as next week.



The measures have drawn criticism from analysts who say they may be too limited to do Mexico much good in tapping new petroleum deposits sorely needed to bolster a shaky economy. Leftist critics, meanwhile, worry that they would open the door to privatizing a state industry long seen by many Mexicans as a source of national strength and pride.

Despite lopsided support for the bill, lawmakers had to retreat to an alternative site to vote after protesters descended on the Senate building, which was surrounded by riot police. Senators met at government offices a mile and a half away.

LA Times