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Energy reform… pick one, some, or all of the below

5 November 2013

Via Noel Mauer, the best simple overview of the proposed energy “reform” bills now before Congress:

Mexico’s three parties split three ways on constitutional reform.

The PRI wants a modest reform that will let Pemex sign joint ventures to develop offshore fields and possibly expand gas and tight oil production on land.

The PRD wants no constitutional reform, but wants to cut taxes on Pemex and turn it into a fully autonomous profit-driven corporation. (Or so they say.)

The PAN wants to throw open the Mexican hydrocarbon sector, making it look more like Brazil or Colombia. It also wants to reform the way the federal government profits from the sector, imposing a scheme that looks almost exactly like the Alaska Permanent Fund, only with the profits going to the government rather than to individuals.

Everyone needs to read this, as it is going to be THE key issue in Mexican politics over the next several years. I think Noel is right that what will emerge will be closest to the PRI proposal.  PAN’s proposal is DOA, but PRI could garner PAN support in return for some of the changes in election law it is also seeking.  I’d also expect that a good part of PRD’s proposal (which I don’t see as wishy-washy as Noel does) — turning PEMEX into an autonomous organ (like Universities are now… self-regulating, and able to make its own decisions, but with a guaranteed operating budget) … isn’t out of the realm of plausibility, will be adopted in part.

Even so, with the PEMEX (er.. Hyrdocarbon) “reforms” likely to impact everything from labor rights to tax issues to environmental concerns (hopefully, Texas oil experts are right, and fracking is not likely to be feasible here) to how the nation defines itself, expect massive public protests.

Now, go read his post. 


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