Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

8/6/2013 (2 years ago)

Catholic Online (

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.


By Catholic Online (NEWS CONSORTIUM)

Catholic Online (

8/6/2013 (2 years 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'

Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2015
That human trafficking, the modern form of slavery, may be eradicated.
Evangelization: That with a missionary spirit the Christian communities of Asia may announce the Gospel to those who are still awaiting it.


More Americas

Two of Mexico's most dangerous criminal imprisoned on U.S. soil Watch

Image of Forty-two-year-old Valdez, who also goes under the name of

By Catholic Online (NEWS CONSORTIUM)

Two of Mexico's most violent and dreaded criminals are now imprisoned on U.S. soil. Edgar "La Barbie" Valdez Villarreal and Jorge Eduardo "El Coss" Costilla Sanchez are among the most notorious of 13 suspects sent to the U.S. in an unusually high-level judicial ... continue reading

Cuban President pressured by Obama to make moves Watch

Image of


President Barack Obama has broadened opportunities for Americans to spend money, travel, and open businesses in Cuba following two rounds of regulatory reforms since December. While America has been on the move, it seems Cuba has limited its movements to reopening its ... continue reading

Cuba's homeless mysteriously vanish prior to the papal visit Watch

Image of Cuba's homeless vanish before Pope Francis' visit and reemerge just as mysteriously afterward.


The streets of eastern Holguin, Cuba are now flooded with homeless people, following Pope Francis's visit; the homeless went missing during the Pope's tour of the country. LOS ANGELES, CA (Catholic Online) - Dozens of homeless now re-flood the streets of eastern ... continue reading

First U.S. Hispanic Saint: Pope Francis to canonize Junipero Serra during U.S. visit Watch

Image of Father Junipero Serra's canonization will

By Abigail James (NEWS CONSORTIUM)

Pope Francis and the Vatican have announced plans to canonize the Blessed Junipero Serra during the Pope's visit to the United States on September 23. Serra will become the United States' first Hispanic saint. LOS ANGELES, CA (Catholic Online) - Often times, the ... continue reading

The 'silent genocide' of the Brazilian Guarani tribe Watch

Image of Guarani tribe members were promised land in 1993 and have yet to see it, so they fight (Survival International).

By Talia Ramos

One of the oldest tribes in South America, the Guarani Indian tribe, was displaced after ranchers claimed their lands, forcing them to sleep on roadsides. Due to their persecution from the politically-powered land owners, the surviving Guarani people have been asking ... continue reading

South American femicide continues to increase at shockingly high rates Watch

Image of Rape, murder, and kidnapped victims in Mexico continues to increase.


Aidé Nava, a mayoral candidate and mother from Ahuacuotzingo Village in Mexico was found decapitated on the streets of her own town. Gangsters are believed to be behind several kidnappings where women are tortured, raped and decapitated.  MUNTINLUPA CITY, ... continue reading

Why Pope Francis' last speech in Cuba was a masterstroke of genius Watch

Image of Pope Francis has become a political force to be reckoned with.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

Pope Francis concluded his visit to Cuba by delivering a masterful speech calling for a new revolution in the socialist country. He delivered his speech just before departing on Tuesday. Though steeped in religious tones, the call to action is courageous and clear. LOS ... continue reading

'It's like a sign of God': Costa Rican community amazed by unusual cloud formation Watch

Image of Beautiful display of cloud iridescence.

By Kenya Sinclair (NEWS CONSORTIUM)

Last Tuesday a cloud phenomenon occurred in Costa Rica, leaving people both mystified and horrified. LOS ANGELES, CALIFORNIA (Catholic Online) - Several cities such as San Jose, Parrita, Pavas, Escazu and Hatillo reported the colorful cloud anomaly. Hundreds posted ... continue reading

Pope Francis wasn't the first to visit Cuba - what happened during previous Papal visits? Watch

Image of Pope Emeritus Benedict XVI meets with Fidel Castro (L'Osservatore Romano Vatican-Pool/Getty Images).

By Kenya Sinclair (NEWS CONSORTIUM)

Pope Francis is the third pope to visit Cuba. Who were the first two and why did they decide to visit? LOS ANGELES, CALIFORNIA (Catholic Online) - Pope Benedict XVI and Pope John Paul II each made the trip to Cuba in 2012 and 1998 respectively.TIME called John Paul's ... continue reading

Pope Francis brings hope to Cuba Watch

Image of Pope Francis with Cuban President Raul Castro.

By Kenya Sinclair (NEWS CONSORTIUM)

On the 62nd anniversary of Pope Francis' first calling from God, the pontiff celebrated Mass in east Cuba and was the first pope to visit Holguin, the province's capital.The pope not only delivered a beautiful mass but also met with Fidel Castro and made a few pointed ... continue reading

All Americas News


Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

Saint of the Day

Saint of the Day for October 4th, 2015 Image

St. Francis of Assisi
October 4: Founder of the Franciscan Order, born at Assisi in Umbria, in ... Read More