• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 24 mins Oil and gas producers fire back at Democratic presidential candidates.
  • 6 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 10 hours Peak Shale Will Send Oil Prices Sky High
  • 1 hour "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 3 hours Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 11 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 4 hours CDC covid19 coverup?
  • 1 day “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 19 hours Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 1 day Who decides the Oil costs?

What Mexico’s “Pemex Reform” Really Means

Bottom Line: Mexico’s Senate on 11 December—after a 19-hour session—approved legislation to modernize the energy sector and open it up to private investment, though some of the bill’s points are still being debated due to ongoing opposition by leftist politicians.

Analysis: The Senate approved the legislation with 95 votes in favor (PRI, PAN, Partido Verde) and 28 against (PRD, PT, Movimiento Ciudadan).

The legislation will amend the Mexican Constitution and change the status of Pemex and CFE (Federal Electric Commission) from public utilities to state-owned businesses. As companies, these enterprises would have autonomy to issue contracts to meet their principal goal of providing Mexico with its long-term energy needs and turning a profit.

Under current law, Pemex is permitted to issue particular service contracts for a set payment with outside providers, an unappealing arrangement for service providers. Oil production today is 25% lower than at its peak a decade ago, and in order to prevent Mexico’s becoming a net energy importer Pemex officials estimate they need to more than double annual capital investment of $25 billion. The only way to draw billions in capital is to permit private investment in the sector.

President Enrique Peña Nieto’s PRI party set out a much more moderate plan on 12 August 2013, which limited contracts to profit-sharing without any share in oil. That proposal was ill-received by…




Oilprice - The No. 1 Source for Oil & Energy News