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Mexican Senate Passes Exploration Oil Reform Bill!

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This topic contains 2 replies, has 2 voices, and was last updated by  Charles Randall 12 years, 8 months ago.

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  • #3363

    Charles Randall
    Participant

    Mexican Senate Passes Bills to Reform Oil Industry (Update1)

    By Jens Erik Gould and Adriana Lopez Caraveo
         Oct. 23, 2008 (Bloomberg)
    Mexico’s Senate voted to allow state-
    owned Petroleos Mexicanos to hire private companies to explore
    and drill for oil
    as protesters and riot police blocked the
    streets outside.
         Lawmakers passed all seven bills based on an initiative
    proposed by President Felipe Calderon.
    The lower house of
    Congress plans to vote on the measures Oct. 28, Emilio Gamboa
    Patron, leader for the opposition Institutional Revolutionary
    Party in the chamber, said in a statement.
         Calderon has said the initiative would free up funds for
    exploration to help reverse declining production at the company,
    known as Pemex, even as lawmakers amended his plan last week by
    removing a proposal to let private companies operate refineries.
         “We’re approving the most important energy reform since the
    oil expropriation,”
    said Ruben Camarillo, a member of Calderon’s
    National Action Party and the Senate’s energy committee. “This
    reform will strengthen Pemex, and give it new and better tools to
    face the great challenges it has before it.”
         Since Pemex was created with the expropriated assets of U.K.
    and U.S. oil companies in 1938, the government has enforced the
    clause of the federal constitution that gives the state the
    exclusive right to process and distribute oil and natural gas.
    Calderon’s measure didn’t propose changing that clause.

                                  Protest

         Senators approved the bills even as they met at an alternate
    site after supporters of former presidential candidate Andres
    Manuel Lopez Obrador blocked the entrance to the Senate building
    to protest the measures.
         Thousands of protesters gathered outside the alternate site
    while senators were voting, shutting down Mexico City’s Reforma
    avenue in the process.
         “I’m here so they don’t privatize Pemex,” said protester
    Octavio Velasquez, 50. “The reform is bad for the people.”
    Velasquez wore a shirt that read “Defend national sovereignty.”
         Opponents led by Lopez Obrador, who narrowly lost the 2006
    presidential election to Calderon, say the initiative would
    transfer Mexico’s oil wealth to foreigners and the business
    elite, and that cutting Pemex taxes is a better option.
         Even so, the majority of senators from Lopez Obrador’s Party
    of the Democratic Revolution voted in favor of the bills today.
         “Lopez Obrador has overplayed his hand,” said George W.
    Grayson, Professor of government at the College of William and
    Mary in Williamsburg, Virginia. “His goal is chaos.”

  • #6501

    Charles Randall
    Participant

    Here is update (see earlier post comments on Bill from Commission under falling oil price)- amazing!
     
    It looks like Mexican Senate actually passed the Exploration Reform bill.  Even though a lot of the important privatization driving aspects were removed it is still extremely important step towards unlocking the oil reserves that Mexico needs. 
    Regards

  • #6499

    Anonymous

    Calderon better move fast, for his time is short. With an anti-capitalist far left socialist government about to take power in the U.S., you can bet that the same people who put Obama in place will be looking to replace Calderon with Orbrador or some other leftwing lackey. Any reforms of the corrupt and inefficient PEMEX will be reversed by the leftist Government that replaces Calderon. Look also for Steven Harpers center right government to eventually be supplanted by a far left government. Canada just recently held elections to try and stave off this possibility as they saw what was coming in the U.S., but within a couple of years, you can bet they the socialists will be back in power When that happens, look out. The environmentalists will surely try to shut down the oil sands production and will probably succeed.

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