(Angus Reid Global Monitor) – Most people in Mexico say that approved reforms to the country’s state-owned oil and gas industry were important and necessary, according to a poll by Demotecnia published in Milenio. 36 per cent of respondents say that the changes were important but not enough to do what Pemex needs.
(Angus Reid Global Monitor) – Most people in Mexico say that approved reforms to the country’s state-owned oil and gas industry were important and necessary, according to a poll by Demotecnia published in Milenio. 36 per cent of respondents say that the changes were important but not enough to do what Pemex needs.
Additionally, 30 per cent of respondents hail the reform as exactly what the company needed.
In the early 1920s, Mexico was the world’s second-largest oil producer. In 1938, after negotiations with foreign energy companies failed, Mexican president Lázaro Cárdenas effectively nationalized the Latin American country’s oil industry. Cárdenas established Mexico’s state-owned oil company Pemex, which to this day is the sole supplier of commercial fuels in the country.
Mexican voters chose their new president in July 2006. Official results placed Felipe Calderón of the conservative National Action Party (PAN) as the winner with 36.68 per cent of all cast ballots. Calderón—a former energy secretary—took over as Mexico’s head of state in December.
Earlier this year, Calderón’s government tabled a bill that would allow Pemex to join with foreign investors in order to drill for oil in the Gulf of Mexico. The administration believes Pemex needs to find outside help to undertake deep-water drilling because it lacks the technology and resources to do it on its own. Pemex registered a net loss of $1.48 billion U.S. in 2007, despite hiking world oil prices.
Supporters of the government bill say domestic production is falling and demand is rising, which has forced Mexico to import oil. Members of the opposition Democratic Revolution Party (PRD) opposed the bill. The Institutional Revolutionary Party (PRI) backed the proposal, but introduced changes.
On Oct. 28, the Mexican Congress approved a revised version of the bill that will only allow for limited private investment. David Shields, an independent energy expert in Mexico City, expressed his view on the approved legislation, saying, "Investors will wait and see how this reform translates into actual contracts. But what we won’t be able to avoid is a major drop in oil production in the short term."
Polling Data
The reform to Pemex has been approved. What do you think about the changes?
|
It was an important reform, but it is not enough to do what Pemex needs |
36% |
|
It is the reform that Pemex needed |
30% |
|
It is not the reform that Pemex needed |
18% |
|
Not sure |
16% |
Source: Demotecnia / Milenio
Methodology: Telephone interviews with 500 Mexican adults, conducted on Oct. 25, 2008. Margin of error is 4.5 per cent.
