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José, can you see?

10 December 2013

In a Bloomberg piece salivating at the thought of U.S. companies getting their paws on Mexican oil (can’t tell what side I’m on, huh?) on the”reform” bill worked out by PAN and PRI (which used to be a nationalist party, but then again the U.S. Republican Party used to be the party of Abraham Lincoln and Teddy Roosevelt, and the British Labour Party once was about working class interests… once) that would allow for…

… private companies from Exxon Mobil Corp. (XOM) to Chevron Corp. (CVX) to develop fields in the largest unexplored crude area after the Arctic Circle as state-owned Petroleos Mexicanos seeks to reverse eight years of falling output. The legislation would allow companies to log crude reserves for accounting purposes, which may make it easier to secure project financing…

… there is some mention of possible roadblocks from PRD. While the bill still needs to pass the full Senate (supposedly a done deal) and the Chamber of Deputies (where PRI holds a clear majority), where there is also likely to be opposition. Not to mention on the streets and in the oil fields.

While I can’t predict the fall-out from the passage of a bill that undoes one of the cornerstones of the Revolution (and — besides bringing in fracking, which is absolutely insane in a country already too prone to earthquakes) and question the premise that Mexico MUST sell its oil (it could be more profitably used to develop industry internally, as alternative energy sources are developed and brought on-line) for now, in the short-term, expect demonstrations both inside and outside government facilities:

At one point during committee debate yesterday, PRD Senator Adan Augusto Lopez played a recording of the U.S. national anthem on his mobile phone to protest what his party says will be the delivery of Mexico’s oil resources to U.S. companies. PRD lawmakers argued the proposed overhaul will cause Mexico to lose sovereignty and control of its energy industry.

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