April 07, 2008

Abstract: (Angus Reid Global Monitor) - The majority of people in Mexico are at ease with the idea of opening their state-owned oil firm to other partners, according to a poll by Reforma. 63 per cent of respondents agree with allowing Pemex to forge alliances with other companies that have the skills needed to drill oil from the seabed, while 29 per cent disagree.

(Angus Reid Global Monitor) - The majority of people in Mexico are at ease with the idea of opening their state-owned oil firm to other partners, according to a poll by Reforma. 63 per cent of respondents agree with allowing Pemex to forge alliances with other companies that have the skills needed to drill oil from the seabed, while 29 per cent disagree.

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 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.

Calderón’s government has proposed a bill that would allow Pemex to join 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 2007 net loss of $1.48 billion U.S., 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) have put together a video criticizing the bill to open Pemex to outside investors, which is being sold on the streets for less than $2 U.S.

On Apr. 1, PRD member Mario di Costanzo defended the plan, saying, "People who don’t read can see this. (...) The DVD aims to spread our proposals, our studies." PRD member Andrés Manuel López Obrador lost the presidential election to Calderón by less than one percentage point. Di Costanzo is the finance minister of Lopez Obrador’s "alternative" government.

Polling Data

Do you agree or disagree with allowing Pemex to forge alliances with those who already have technology and experience to drill for oil at the bottom of the sea?

Agree	63%
Disagree	29%
No opinion	8%

Source: Reforma
Methodology: Telephone interviews with 850 Mexican adults, conducted on Mar. 29 and Mar. 30, 2008. Margin of error is 4 per cent.