Mexico’s natural resources are its own. There is no contradiction in that and reform that could allow some reasonable level of private investment in its oil.
Pemex, Mexico’s state oil monopoly, is in dire need of the technological improvements that might come with that foreign investment.
Mexican President Enrique Peña Nieto is proposing reform that falls short of a foreign company’s ability to own the oil and gas that the firm drills in Mexico.
But this just isn’t in the cards.
Mexicans have opposed constitutional tweaking that might even hint at anything less than 100 percent ownership of Mexican oil.
Nonetheless, Peña Nieto has proposed constitutional changes that would allow foreign firms to share some of the risk and profits of oil exploration.
Mexican oil production has dropped 25 percent in the last decade as wells have dried up. More Mexican oil exists in deeper water and in shale, much as in the Eagle Ford play.
The petro facts of life being what they are in Mexico, Peña Nieto’s modest reforms are the most that can be accomplished.
A strong Mexican economy and well-funded government are good for Mexico — and its neighbors.
Express News, San Antonio