Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

8/6/2013 (1 year ago)

Catholic Online (www.catholic.org)

President Nieto has a major fight to reform the antiquated company.

Mexican President, Pena Nieto, has a plan to reform Pemex, the state-run oil giant. Pemex is important as a pillar of the Mexican economy and a symbol of national pride. However, beset with corruption and inefficiency, the company will continue to decline unless something drastic is done about it.

Pemex Gas Station.  Nearby protesters are corralled by police in riot gear, underscoring the intensity of the issue for the Mexican people.

Pemex Gas Station. Nearby protesters are corralled by police in riot gear, underscoring the intensity of the issue for the Mexican people.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

8/6/2013 (1 year ago)

Published in Americas

Keywords: Pemex, Mexico, oil, protests, drudge, reform, Nieto


MEXICO CITY, MEXICO (Catholic Online) - Petroleos Mexicanos, known popularly as Pemex, the company was formed when the Mexican Constitution nationalized all oil and minerals, and seized assets to produce these materials for the good of the people. Currently, 70 percent of Pemex's profits are paid to the government and represent a major source of revenue for the country.

The company is not open to foreign investment either. Now, outsiders suggest this could be part of the reason why the company is operating at least 30 years behind the rest of the world. Mexico has vast reserves which cannot be tapped because the technology and infrastructure are lacking.

To get at this additional oil, Nieto and his supporters have suggested opening the company to some kind of foreign investment. However, populists, such as those in the leftist Democratic Revolution Party, or PRD oppose any potential outside influence, or more importantly, the diversion of profits to outside interests.

In a recent national poll, 65 percent responded saying they opposed opening the company to outside investment.

Since the Mexican Constitution declares minerals to belong to the people, a diversion of funds from the oil industry to outside investors would be illegal, so a constitutional amendment would be required, increasing the complexity of reforming the organization.

In addition to being incapable of efficiently exploring and tapping into deeper reserves, Pemex is also fraught with corruption, and indeed, the oil giant is legendary for its corruption and inefficiency.

The company pays generous pensions, is bloated with a union, and routinely pays money and gifts to politicians that range from designer clothes to private jets.

Meanwhile, the company continues its downward slide. By 2020, Mexico is likely to become a net importer of oil, as opposed to an exporter.

So how the ailing and antiquated company should be reformed is a question on the minds of many citizens and politicians, but there are no easy answers.

Opening the company to foreign investment would bring an influx of cash and technological expertise as well as equipment, which would quickly increase production and efficiency. It would restore sagging profits. Outsiders would also expect the company to reform itself internally, and to resolve issues with corruption to ensure that profits flow along with the oil.

Yet, this scenario would involve money leaving Mexico, money which the people claim should be theirs.

Another proposal involves reducing the tax the company pays to the government from 70 percent to something less. This would leave more money available for the company to upgrade equipment and improve itself without the need for foreign cash.

Yet, this would also mean less money for Mexico and the people.

Reforming the company politically, and reducing the power of the labor union which serves it is hardly considered an option with their power too great.

So, Pedro Nieto has a fight on his hands, one he accepted and pledged to make. However, there is no solution that does not include some kind of pain to the Mexican people. Yet it must be realized that the Mexican oil industry is in accelerating decline and will not serve the people much longer without reforms.

So all that remains is for the people to pick their poison - if the powers that be will let them choose at all.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for January 2015
General Intention:
That those from diverse religious traditions and all people of good will may work together for peace.
Missionary Intention: That in this year dedicated to consecrated life, religious men and women may rediscover the joy of following Christ and strive to serve the poor with zeal.



Comments


More Americas

IT'S MINE! Traders, tycoons and miners all vying for possession of Brazil's 180,000-carat Bahia Emerald Watch

Image of For the time being, the gem is now held in an undisclosed Sheriff's Department location.

By Catholic Online (NEWS CONSORTIUM)

Ever since human eyes laid upon it in 2001, Brazil's Bahia Emerald has been caught in an ongoing tug of war between those who say the gem is rightfully theirs. Landing in an L.A. County sheriff's locker, the 180,000-carat, 840-pound behemoth has been the ... continue reading


THE RISE OF WOMEN: Negotiations between the U.S. and Cuba begin with two influential women leading the way Watch

Image of Jacobson and Vidal cover everything from human rights to tourist travels during the beginning of negotiations between Cuba and the U.S.

By Abigail James (NEWS CONSORTIUM)

President Obama recently loosened the embargo the United States has with Cuba. Now the next step is to negotiate and work towards less hostility and normalizing the relationship between the two countries. LOS ANGELES, CA (Catholic Online) - At the base of these ... continue reading


Murderous gang violence plagues El Salvador every day with no end in sight, ambitious new plan offers hope Watch

Image of Gangs run the streets in El Salvador, often leaving people terrified to be out at night.

By Abigail James (NEWS CONSORTIUM)

412 people were murdered in El Salvador during December 2014. A total of 3,942 murders occurred last year in what is now the most dangerous country in the world. A 57 percent increase than those killed in 2013. LOS ANGELES, CA (Catholic Online) - Violent gangs have ... continue reading


AMAZING discovery - mummy mask contains fragment of the Gospel of Mark Watch

Image of A fragment of the Gospel of Mark has been found used in the mask, making it the oldest known example of Holy Scripture yet found.

By Catholic Online (NEWS CONSORTIUM)

A mask is frequently used to conceal an identity. This is certainly the case of a mask used to cover up a mummy. A fragment of the Gospel of Mark has been found used in the mask, making it the oldest known example of Holy Scripture yet found. Created before 90 ... continue reading


A good or bad idea? Under the Obama administration, U.S. softens embargo with Cuba Watch

Image of Cuban flags fly high as embargo is loosened.

By Abigail James (NEWS CONSORTIUM)

The relationship between the United States and Cuba will soon change as the Obama administration begins to slowly erase the 1962 U.S. embargo against Cuba. An increased amount of travel and trading between the two countries will open up. LOS ANGELES, CA (Catholic ... continue reading


Five years later Haiti still tragically suffers from 2010's earthquake: Where did $13.5 billion dollars in relief funds go? Watch

Image of Much of Haiti remains devastated after the 7.0-magnitude earthquake in 2010, despite raising $13.5 dollars in relief funds.

By Abigail James (NEWS CONSORTIUM)

A 7.0-magnitude earthquake rattled Haiti in 2010 destroying nearly everything, and leaving 220,000 people dead and 300,000 injured. The entire world was shaken by this disaster; 13.5 billion dollars in donations and pledges was raised to help the country recover. LOS ... continue reading


CANNIBAL RITUAL: Mexican cartel members forced to eat human hearts Watch

Image of Arguably the country's most horrific organized crime gang, Michoacan state suffers daily from ongoing battles between rival factions.

By Catholic Online (NEWS CONSORTIUM)

Decapitating and ripping apart their still-living victims, the dreaded Knights Templar Mexican drug cartel forced members to devour the hearts of its enemies. The Knights Templar, reigning over Michoacan state, has kept the region in its iron grip by armed ... continue reading


Brazil looks forward to 2016 Olympics, but should their government be looking closer to home? Watch

Image of Brazil's drug trade primarily is based on cocaine and marijuana, and many slums in the cities are devoted and run to the drug trafficking gangs.

By Matt Waterson (NEWS CONSORTIUM)

Vila Alianca, an unofficial section of Rio de Jeneiro,  is an enclave of violence and organized crime, and one of the regions that the Brazilian government has not decided to try to pacify prior to their hosting of the 2016 Olympics. LOS ANGELES, CA ... continue reading


EPIDEMIC FEMICIDE: The horrendous reality for women in Mexico Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Six women are assassinated every day in Mexico. Only 24 percent of the 3,892 femicides (female homicides) in 2012 and 2013 were investigated by authorities, according to the National Citizen Femicide Observatory. Only 1.6 percent of the femicides investigated let to a ... continue reading


One bite and you're doomed! President of Argentina graciously adopts a young boy to stop his dreadful werewolf curse. Watch

Image of According to Argentinian folklore, the seventh son born to a family is cursed to become a werewolf.

By Abigail James (NEWS CONSORTIUM)

The seventh son or daughter to a family is cursed, according to Argentinian and Portuguese folklore. LOS ANGELES, CA (Catholic Online) - On the first Friday after the seventh son's 13th birthday, he transforms into his true form, "el lobison." El lobison, or the ... continue reading


All Americas News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Hebrews 10:11-18
11 Every priest stands at his duties every day, ... Read More

Psalm, Psalms 110:1, 2, 3, 4
1 [Of David Psalm] Yahweh declared to my Lord, 'Take ... Read More

Gospel, Mark 4:1-20
1 Again he began to teach them by the lakeside, but ... Read More

Saint of the Day

Saint of the Day for January 28th, 2015 Image

St. Thomas Aquinas
January 28: St. Thomas Aquinas, priest and doctor of the Church, patron of ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter