WekiileaksAviciiNewAlbum

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Saturday, 10 August 2013

Will Mexico's New Energy Plan Make It the Next Kuwait?

Posted on 04:38 by Unknown

North America is rapidly expanding into the Middle East, at least in terms of energy production. Canada has the enviable oil sands. The United States is a world leader in natural gas. Now, Mexico, which has a state-run oil industry, is looking forward to expand its public energy enterprise into the private sector. It is a necessary step to maximize the resources available and bring back Mexico’s historical reputation as a global energy leader.

Consensus and reform rarely go together, and Mexican politics is no different, where there are more than two dominant parties (unlike in the United States). Currently, President Enrique Pena Nieto is a member of the Partido Revolucionario Institucional (PRI) party, which regained power in the 2012 after a 12-year absence.

Compromise among the divided government is not entirely impossiblebut the Mexican constitution is an obstacle. The energy sector is as much a part of the government in Mexico as Social Security is a part of America's. The Mexican constitution would have to be amended to change the oil monopoly that is Pemex, the largest company in Mexico.

If Pemex is broken up, foreign money could flow into industrial exploration and development among oil and gas fields. Some economists predict that opening up this sector will add one percentage to GDP. When the stakes are that high, cross multiple political parties, and involve the largest industry in the world, corruption is an obvious possible consequence.

Pemex constitutes one third of the Mexican economy, but production has been on a downward path in recent years. In 2004, Petroleos Mexicanos produced 3.5 million barrels per day. Now, that rate is down to 2.6 million. If that trend continues, by the end of the decade, Mexico would be a net-energy importer.

Relying on foreign oil and the problems that can accompany it is something that the United States can relate to.

Histotically, Mexicans feel strong nationalistic pride towards their country’s public energy company. In 1938, President Lazaro Cardenas, a member of the PRI, nationalized the industry, closing the door to foreign interests. That has been the standard for the past 70 years and for the vast majority, Mexico has done well. Prior to the Great Depression, Mexico was the second largest oil producer in the world, albeit with assistance from American oil tycoons.

President Nieto is portraying the opponent’s issue with foreign involvement in the oil industry as inevitable. If nothing is done, Pemex will become increasingly inefficient and unable to keep up with foreign competitors. If Pemex is broken up now, foreign money may help alleviate the troubles and more revenue will be created as a result.



Click here to view original article
Email ThisBlogThis!Share to XShare to FacebookShare to Pinterest
Posted in | No comments
Newer Post Older Post Home

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • The 4 Stages Of Student Loan Grief
    When Congress failed to act on July 1 , federal subsidized Stafford student loan interest rates doubled from...
  • Chinese Doctors Take Bribes All the Time, But Only Because They Have to
    Over the past couple of weeks, China has extended its anti-corruption campaign to the pharmaceutical industr...
  • The Democratic Fairy Tale About Detroit That the Media is Feeding You
    The past week, a couple of people in the media threw around the comedic notion that the Detroit bankruptcy...
  • How Abuse Survivors Can Protect Themselves On Facebook
    Just as Twitter has been working to amend its privacy features in light of violent and threatening attacks on some prom...
  • Liberty-Loving Members Of Congress Silent On Bradley Manning
    Paul, Wyden, and Amash take a pass. Love the leak, hate the leaker? Army Pfc. Bradley Manning is escort...
  • Why Kate Middleton's Post-Birth Dress Was a Feminist Choice
    No matter how little or how much you care about the British royal family, you must've seen the pictures of Will...
  • The Economic Reality That Barack Obama Clearly Doesn't Understand
    President Barack Obama’s recent speech on the economy demonstrates a stunning lack of economic knowledge. By focusi...
  • How to Survive a D.C. Summer If You're Not Interested in Politics
    So you’re in D.C. for the summer. Chances are you’ve hit all the tourist sites in a day, learned to use the Smithso...
  • French Farmers Protest EU By Destroying 100,000 Eggs a Day
    Can you say scrambled eggs? In France, poultry farmers pummeled a tax office in Brittany with 100,000 eggs , protesting ...
  • U.S. Sanctions On Iran Are So Bad, Women Have Run Out of Birth Control
    Iran has never been touted as a bastion of human rights, economic equality, or political freedom. But although many of Iran’s...

Blog Archive

  • ▼  2013 (500)
    • ▼  August (414)
      • U.S. Sanctions On Iran Are So Bad, Women Have Run ...
      • National Zoo Tiger Cubs Are a Reminder Of How Much...
      • Why Are Chinese Workers At Apple Suppliers Foxconn...
      • What One Year At PolicyMic Has Taught Me About Growth
      • 10 Memes to Help You Celebrate Eid
      • How Many Terror Threats Does the U.S. Get Every Day?
      • Mic Check: This Photo Perfectly Sums Up Obama’s Re...
      • I'm An Openly Gay Gold Medalist and I Reject the S...
      • Not Even Promising 50 Years Of Secrecy Can Get Con...
      • Lady Gaga's 'Burqa' is Supposed to Empower Muslim ...
      • Why I'm Proud to Be a Part Of Know Your IX
      • Wait Until You Read How Republicans Just Wasted Ev...
      • Them's Fightin' Words: The Case For Bringing Back ...
      • 3 New Yorkers Who Are Asking Forgiveness — And Doi...
      • French Farmers Protest EU By Destroying 100,000 Eg...
      • Here's What Obama Had to Say on Jay Leno Last Night
      • Inside America's Second Guantanamo: Bagram Airfiel...
      • Obama Leno YouTube Video: The President Says He Ha...
      • Two Males Arrested in Rehtaeh Parsons Case
      • China is Forcing 250 Million Rural Dwellers to Rel...
      • Ebony Magazine Cover Shows We Can't Give Up On You...
      • Guess Which Continent is Home to 14 of the 15 Most...
      • Gay Couple Forced to Back Of the Bus Gets An Apolo...
      • Congress Might Actually Fix a Billion-Dollar Problem
      • One Direction Fans Are Fuming Over This Harry Styl...
      • Why Cory Booker is Going to Be New Jersey's Next S...
      • Women Without Children Aren't Selfish — They're Smart
      • This Ohio Town Will Discriminate Against Minority ...
      • Boycotting the 2014 Olympics is Pointless For Gay ...
      • Sydney Leathers Will Teach You How to Bag a Weiner
      • Will Mexico's New Energy Plan Make It the Next Kuw...
      • TSA "VIPR Teams" Will Soon Be Patting You Down Out...
      • If You've Communicated With Someone Outside Of the...
      • Florida's Execution Of Mentally-Ill Mass Murderer ...
      • Latin America's Most Successful Politician? It's P...
      • How a 7% Cut to a U.S. Agency's Budget Can Take Do...
      • FEC Official Don McGahn Admits IRS Scandal Might B...
      • Detroit's Bankruptcy Could Spread Nationwide if We...
      • Seth Meyers On "Late Night" Just More Of the Same
      • 8 Coming-of-Age Films Every Millennial Needs to Watch
      • How to Get Over Your Ex in the Facebook Era
      • You're Not a Grown-Up Until You Stop Texting Your Mom
      • How Abuse Survivors Can Protect Themselves On Face...
      • PolicyMic is Debating the "B" Word This Week – Whe...
      • Can Shinzo Abe Make Japan a Superpower Again?
      • For the Simple Crime of Smoking Marijuana, the Gov...
      • How to Get Over Your Ex in the Facebook Era
      • Open Mic With Eliot Spitzer, Candidate For New Yor...
      • Happy Anniversary, Myanmar
      • Republican Threat to Shut Down Government Over Oba...
      • Polyphonic Spree Review: 'Yes It's True' Is the Ha...
      • Immigration Reform 2013: Why Did the Media Ignore ...
      • Social Security Begins Making Payments To Some Sam...
      • Can Billionaires Like Jeff Bezos and John Henry Sa...
      • Obama: "We Are Not Going To Completely Eliminate T...
      • How Hollywood Helped Hitler — and How It's Helping...
      • Obama: "I Don't Think Mr. Snowden Was A Patriot"
      • You Won't Believe What Just Happened On Reddit
      • Obama: "Mixed Success" With Putin
      • Name Which Democrat Said This: "We’re Not Broke, T...
      • Obama Opposes Olympics Boycott
      • Obama Administration Launching NSA Transparency We...
      • Why Bad TV Succeeds But Good TV Fails
      • Republican Mayoral Candidate Doesn't Want To Expla...
      • Smoking Is Not a Right
      • 5 Reasons Conservatives Don't Believe Climate Chan...
      • In Open Letter, California Sen. Barbara Boxer Tell...
      • Wisconsin Official Fired After Saying Undocumented...
      • What a Free Market Approach to Education Would Loo...
      • Congressman Suggests "Arab Persons" Might Disguise...
      • Congress' Iran Policy: Short Sighted and Irrational
      • Insane Confrontation At Oklahoma Congressman's Tow...
      • The TSA Is Turning Us Into a Stop-And-Frisk Nation
      • Terry McAuliffe Dismisses Reporter's Question On T...
      • Dronestagram Brings Drone Strikes Abroad A Little ...
      • Is Jay-Z Right About the Middle Class?
      • TSA Patdowns Coming to a Concert Near You
      • How A Democrat Dodges A Question About Wall Street...
      • International Olympics Committee Asks Russia To Pr...
      • The Fast Food Strikes Are Really About Civil Rights
      • How Jackie Chan Became The Most Hated Celeb On The...
      • Yemen Terror Threats Actually Come On Tail Of Huge...
      • Watch Anthony Weiner Struggle To Take A Reporter W...
      • Kristin Davis is Out Of Comptrol As NYC Race Gets ...
      • Democratic Gun Politics In Arkansas Senate Race Ar...
      • 5 Ways to Save Money On Health Care Costs
      • Russian U.N. Ambassador Speaks Out On Anti-LGBT Laws
      • RNC Chairman is Insane to Threaten NBC and CNN Ove...
      • 4 Ways Your Boss Will Set You Up For Failure
      • 5 Netflix Features That We Desperately Need
      • Thought Republicans Were Done With the War On Wome...
      • McDonald's Big Mac Study is a Prime Example of Wha...
      • MLB Suspensions List: 13 Baseball Players Busted F...
      • The 113th Congress Takes "Dysfunctional" to a Whol...
      • Who Does Desiree Hartstock Pick? The Sad Reality O...
      • Sean Sasser, AIDS Activist Known From MTV's "The R...
      • Obama Campaign Mastermind Jim Messina Now Working ...
      • Can Stay-At-Home Governor Andrew Cuomo Go National?
      • Burka Avenger: Can This Superhero Save Pakistan?
      • Ken Cuccinelli Joked About Drinking With Ted Kenne...
    • ►  July (86)
Powered by Blogger.

About Me

Unknown
View my complete profile