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 October 2014
Peace:
That the Lord may grant peace to those parts of the world most battered by war and violence.
World Mission Day: That World Mission Day may rekindle in every believer zeal for carrying the Gospel into all the world.



Comments


More Americas

BREAKING: Shots fired in Canadian capital, soldier killed by gunman at war memorial Watch

Image of Armed members of Canada's Royal Mounted Police are searching for an unknown number of shooters in Ottawa, Canada's capital.

By Robert Mullen (NEWS CONSORTIUM)

There have been multiple gunmen and gunshots in Canada's capital of Ottawa, and at least one Canadian service man was shot in what may be-but is unconfirmed-a terrorist attack. LOS ANGELES, CA (Catholic Online) - The shootings occurred just before 10 a.m. ET on ... continue reading


Bermuda buttons down for Hurricane Gonzalo Watch

Image of Bermuda is getting ready to get hit by Hurricane Gonzalo, which is expected to have winds up to 145 miles per hour.

By Catholic Online (NEWS CONSORTIUM)

Bermuda is set to be hit by a strong storm on October 17, Hurricane Gonzalo, one of the most powerful on record to hit the island. LOS ANGELES, CA (Catholic Online) - Schools on the island were closed on October 16, and many residents boarded up the windows of their ... continue reading


Sex trafficking ring that used teenaged girls, boys busted in Colombia Watch

Image of Working out of clandestine sites and massage parlors, the ring frequently used taxi drivers to bring in foreign clients looking for underage sex.

By Catholic Online - (NEWS CONSORTIUM)

After a lengthy investigation, a joint operation between the United States and Colombia successfully led to 11 arrests across the South American nation in a large sex trafficking ring. The ring used teenaged girls and boys, one victim as young as 11 and kept ... continue reading


Dreaded Juarez drug cartel leader arrested without a shot being fired Watch

Image of Carrillo Fuentes faces a number of charges in the United States. Drug trafficking, conspiracy, money laundering, tampering with a witness and

By Catholic Online (NEWS CONSORTIUM)

Feared and respected, Juarez drug cartel boss Vicente Carrillo Fuentes aided Ciudad Juarez' reputation as one of the most dangerous regions on Earth. Fuentes has now been captured and arrested without a shot being fired. LOS ANGELES, CA (Catholic Online) - The ... continue reading


Man finds kidnapped daughter, missing for 12 years! Watch

Image of Sabrina Allen, seen here in a picture from 2002, was taken by her mother to Mexico for 12 years. She will be reunited with her father who has labored to find her for more than a decade.

By Catholic Online (NEWS CONSORTIUM)

Sabrina Allen, the girl was kidnapped by her mother 12 years ago and taken into Mexico from Texas, is set to be reunited with her father who last saw her when she was five years old. LOS ANGELES, CA (Catholic Online) - Mexican and U.S. authorities arrested Dara ... continue reading


As Ecuador plans to drill in the Amazon, natives know their time is up Watch

Image of Oil drilling in the Amazon rainforest has caused great destruction of the once fertile and incredibly diverse ecosystem there.

By Catholic Online (NEWS CONSORTIUM)

Ecuador's Yasuni National Park is considered one of the world's most bio-diverse regions. This unique place is inhabited by more than 20 different endangered mammals, and just 2 ½ acres of this patch of Amazon rainforest contains more than 100,000 species of ... continue reading


33 million crimes per year! Despite crackdown on crime, Mexicans still doubt ability of law enforcement Watch

Image of Despite increased effort to stop crime, most Mexicans revealed they don't report crimes that affect them because they have little faith in the abilities of police or law enforcement to do anything about it.

By Catholic Online (NEWS CONSORTIUM)

A new survey from the national statistics institute (INEGI) revealed that despite claims from the Mexican government that their country is becoming safer, there were a record number of crime victims in that country last year. LOS ANGELES, CA (Catholic Online) - ... continue reading


Eight Mexican soldiers held in shooting deaths of 22 drug gang members Watch

Image of The shooting started after soldiers came under fire from the suspected gang members, resulting in a gunfight lasting several minutes, the government said.

By Catholic Online (NEWS CONSORTIUM)

An army officer and seven soldiers have been detained in connection with the deaths of 22 gang members in the town of Tlatlaya, in rural southern Mexico. While originally described "as a fierce gun battle," the physical evidence at the scene suggests that the ... continue reading


Paraguayan bishop accused of protecting sexually abusive priest removed by Pope Francis Watch

Image of Pope Francis dismissed a Paraguayan bishop accused of protecting a priest suspected of sexually abusing young people this week. Bishop Rogelio Ricardo Livieres Plano of Ciudad del Este has been relieved of his duties.

By Catholic Online (NEWS CONSORTIUM)

Pope Francis dismissed a Paraguayan bishop accused of protecting a priest suspected of sexually abusing young people this week. Bishop Rogelio Ricardo Livieres Plano of Ciudad del Este has been relieved of his duties. The Vatican said Pope Francis had taken the ... continue reading


Was it really a meteorite? NASA scientists remain skeptical about Nicaraguan crater Watch

Image of A meteorite from a passing asteroid may have caused a crater in Nicaragua on the evening of September 6.

By Catholic Online (NEWS CONSORTIUM)

A meteorite crashed in Managua, Nicaragua, late on the evening of September 6, causing a loud explosion and leaving a crater 39 feet across, Nicaraguan government officials reported. LOS ANGELES, CA (Catholic Online) - Nicaraguan spokeswoman Rosario Murillo said ... 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, Ephesians 3:14-21
14 This, then, is what I pray, kneeling before the ... Read More

Psalm, Psalms 33:1-2, 4-5, 11-12, 18-19
1 Shout for joy, you upright; praise comes well from ... Read More

Gospel, Luke 12:49-53
49 'I have come to bring fire to the earth, and how I ... Read More

Saint of the Day

Saint of the Day for October 23rd, 2014 Image

St. John of Capistrano
October 23: St. John was born at Capistrano, Italy in 1385, the son of a ... 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