PEMEX has a wide-range of opportunities

When AMLO takes office in 100 days, PEMEX will be drastically changed once again
PEMEX has a wide-range of opportunities
PEMEX urgently needs to invest in technology – Juan Carlos Reyes/EL UNIVERSAL
22/08/2018
09:15
Mexico City
Newspaper Leader
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PEMEX still is Mexico's most important company, despite the production downfall in the last decade, not updating its technology to develop new projects, and being the main contributor to public spending until recently, because it's forced to make substantial contributions to the government as a result of fiscal requirements.

With the excuse of strengthening it, this administration approved legal changes that were considered taboo for decades. Although PEMEX is still controlled by the Mexican government, the 2013 Energetic Reform allowed its association with individuals to develop specific projects, as well as allowing the participation of foreign companies in the industry.

This will surely change in 100 days, when the new government takes office, as it has previously declared its rejection towards the reform.

According to the incoming administration's rescue plan, at least 15 articles from the Hydrocarbon Law will be modified to indefinitely suspend the international tenders to obtain contracts for the exploration and exploitation, they will also review the legality of the contracts granted and postpone the alliances arranged by PEMEX. It is also looking to grant PEMEX with absolute budget autonomy and management, to pull it out from the Expenditure Budget and to assign an energy security office, as well as integrating the oil company in one company again.

Since its nationalization in 1938, PEMEX has become an identity and national sovereignty symbol for the country. PEMEX deserves a chance to resurrect and be among the world's biggest companies once again.

Several experts have criticized that during the last 18 years, at least, the different governments have neglected PEMEX, undermining its productive and exploration capacity. Along with that, the policies about importing fuel practically destroyed the refineries in the country, as well as money misappropriation of funds by high ranking officials.

The chosen plan must include technological and economic efficiency programs, but also employment programs, so its workers stop being a privileged class and commit to improving the company, without onerous economic demands.

In a few words, PEMEX would have to rely on transparency and stop looking like a white elephant, supported by taxpayers' money.

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