Skip to content

PEMEX deal from PRI might change everything

19 July 2008

I’ve been thinking for a while (and started a post on the subject about two months ago, that I never finished) that Beatriz Paredes Rangel may be Mexico’s first woman President.  Since taking over as party chair after Roberto Madazo’s disasterous campaign for President in 2006 and the party purge that finally threw out Elba Esther Gordilla, PRI has recovered nicely.

While it has always been the largest party, it never seemed to find an identity after losing its position as the “Party of everyone who had a stake in the 1910-20 Revolution”.  Trying to be socialist and neo-liberal, nationalist and internationalist, and at the same time making space for individual party power brokers (like Gordilla) is impossible in a multi-party state.  While the PRI normally is able to hold its own, normally by forming fusion tickets with the Greens or other small parties, it seemed to be losing its identity.  Gordilla and Madroza had been trying to work with PAN, but the Mexican right is only about a third of the electorate, and it’s attempts to become a centerist party have opened it to severe criticism by PRD.  One factor in Lopez Obrador’s phenonomal appeal was that the PRI was wishy-washy, and seen as a “me too” party by those on the left. PRD writers still refer to PRIAN — suggesting PRI and PAN are one and the same.   In other words, basically irrelevant and too willing to give in to the more reactionary proposals from PAN that never really appealed to PRI voters.

Paredes stemmed the losses, going back to the party’s socialist and nationalist roots, and appealing to the Mexican middle (left of the U.S. center) for whom the PRD is “too leftist”.  Certainly PRI still includes some incompatible elements — and some embarrassing leaders (Ulises Ruiz in Oaxca, Manuel Marín Torres in Puebla), but every party has its bozos.

By making common cause with the PRD, and presenting a viable energy reform compromise that satisfies the majority of Mexicans who oppose (energetically oppose is what I want to write) any hint of privatization and foreign control of oil resources, the former Tlaxcala Governor and Senator may be an odds on favorite for her party’s presidential nomination in 2012

The PRI proposal for PEMEX reform is only being presented partially. I suspect there are still details to be worked out, and some horse-trading with the PRD to handle. Interestingly enough, in this article, PAN is only mentioned in passing. The PEMEX deal, when it comes, will not be a PAN production. The original article, “Cierra filas el PRI en torno de su plan energético” by Susana Hernández appeared in today’s Milenio. My translation.

Governors, legislators and the PRI leadership have closed ranks around an energy reform package which will be presented 22 July during the closing session of the Senate debate on the reform.

Party chair Beatriz Paredes, Senate leader Manlio Fabio Beltrones and Chamber of Deputies leader Gamboa Patrón, along with PRI state governors called the meeting to present the alternative proposal which will be presentate to the Senate in the next week.

The meeting’s participants endorsed the proposal, which meets the party’s objectives of presenting viable and progressive energy reform which will be accepted by a Senate majority.

Interviewed after the closed-door meeting, Beatriz Paredes stressed that the group’s objective was to maintain a dialoge with PAN and PRD, and to reach an accord.

“”I have indicated that our national leadership met in the spirit of open dialogue with all parties, including PRD and PAN, and we are willing to share our point of view with them. Hopefully, we have reached a point of concensus with them,” she emphasized.

The PRI chair went on to say that the party’s proposal included a serious analisis of President Felipe Calderón’s proposal, especially those points insufficiently covered.

Parades rejected the idea that presenting the iniative will entail political costs for the party. She reiterated that the PRI proposal will strenthen PEMEX autonomy, without privatization: goals in line with party statues.

“I am convinced that our proposal is favorable to the country and national development, and that Mexican society will appreciate the initiative that will be presented in the best spirt of citizenship by PRI legislators.”


The PRI leader added that party deputies and senators will be holding workshops to hammer out details of the proposal, backed by the Central Committee.

Regarding negotiations with PRD, Paredes recognized party differences in some areas, but the PRD have yet to read the details.

“The PRI position has been very clear – we have always pushed transparency and in no way support discretionary handling [of the PEMEX budget].”

Paredes added that the time given the legislature by the Executive branch to consider energy reforms was adequate.

According to a PRI Central Committee news release, the meeting included the goverors of Sonora, the State of Mexico, Veracruz, Campeche, Puebla, Nuevo León, Hidalgo and Colima. The Governors of Tamaulipas, Sinaloa, Nayarit and Quintana Roo sent representatives. Missing were the governors of Tabasco and Chihuahua, who were both out of the country.

PRI governors said they respected the decision of the parlimentary coordinators in presenting the initiative.

Key details

On Wednesday, Manlio Fabio Beltrones will present a PRI propsal which contemplates the creation of PEMEX subsidiaries financed nationally. As the Senator explained, the proposal will allow private Mexican companies to participate in refining and storage.

In addition, private industry would be allowed to invest in the exploration of deposits with the purpose of discovering new reserves to replace production lost in recent years.

3 Comments leave one →
  1. Mr. Rushing's avatar
    Mr. Rushing permalink
    20 July 2008 11:42 am

    This might be a good thing for Mexico to have an increase in exploration and refinery. Hopefully they can find, drill, and refine enough oil to exceed national demand and then export for sale in the United States and Canada (which is doubtful due to environmental laws of the US which regulate how gasoline is refined and what additives are required. see Clean Air act of 92)

    Even still they could export crude oil for worldwide markets like China and India.

  2. Steve Gallagher's avatar
    22 July 2008 5:51 pm

    What Mexico has to do soon, is deal with refinining it’s own oil for it’s own people. This is priority # 1. Because although PEMEX produces more than enough oil for Mexico, they are screwing up financially. Lack of refinery means that they sell oil to the US, then buy back refined gasoline. Most, or all of the profits that they get exporting oil to the US is spent on buying back refined gasoline, which means that they are essentially allowing US corporations to skim off all of the PEMEX profits.

    Second priority would be exploration, but to concentrate right now on exploration would only give more oportunity to skim profits off. Better to leave it in the ground for a while.

    Actually energy conservation and efficiency would make a better second priority. Exploration can drop to third or lower.

    Steve Gallagher

  3. Public Adjuster's avatar
    25 July 2008 5:10 am

    yea… mexico will start its own oil supply right after america buys it all… if the us cant supply its own oil what makes you think mexico will… and even if it does itll be worth more to sell it the the us than use it themselves

Leave a reply, but please stick to the topic