Arab Today, arab today mexico moves to open oil industry to outsiders
Last Updated : GMT 18:49:26
Arab Today, arab today
Arab Today, arab today

President says reform could ‘lift standards of living’

Mexico moves to open oil industry to outsiders

Arab Today, arab today

Arab Today, arab today Mexico moves to open oil industry to outsiders

Mexican President Enrique Peña Nieto
London – Arab Today

Mexican President Enrique Peña Nieto London – Arab Today Mexico\'s president proposed opening the country\'s energy sector to \"big oil\" for the first time in 75 years, a move that could unleash billions in investment .
\"Mexico faces a historic opportunity,\" Enrique Pena Nieto, flanked by Cabinet members, said Monday night in a prime-time nationally televised address from the presidential palace.
\"This profound reform can lift the standards of living for all Mexicans,\" he said.
The Mexican economy, whose growth has averaged less than 2 percent a year since 2000, would grow faster \"than at any time in decades\" by allowing outside oil companies to explore and pump for oil and natural gas, he said.
The move would create jobs, lower electricity costs and revive Mexico\'s status as a global energy power, he said.
The proposed changes would loosen the grip of state oil monopoly Petroleos Mexicanos, or Pemex, and open Mexico\'s estimated 115 billion barrels in reserves and 27 billion barrels of deep sea crude to oil giants such as ExxonMobil Corp., Chevron Corp., ConocoPhillips Co., BP PLC, Royal Dutch Shell PLC and France\'s Total SA.
The opening would come about by changing two 75-year-old amendments to Mexico\'s Constitution, Pena Nieto said -- one that forbids private-sector contracts and the other that limits Mexican energy to state-run institutions.
But the proposal also confronts a core assumption of Mexican national identity -- that the country maintains total sovereignty over its energy resources.
All aspects of Mexican oil production --from extraction to refining and distribution -- have remained the legal property of the Mexican people since those amendments were instituted in 1938.
So as a result, Pena Nieto said his proposal would limit the oil giants to profit-sharing contracts but no production-sharing contracts.
This means the reserves would continue to belong to the Mexican state and Pemex would remain \"100 percent\" in state hands, the president said.
The oil giants had no immediate comment to Pena Nieto\'s proposal.
U.S. regulations generally require an oil company to have a right to produced reserves in order to book them, the Financial Times said.
Pena Nieto\'s measure must be approved by Mexico\'s General Congress.
His centrist Institutional Revolutionary Party, or PRI, controls both congressional chambers. That control, plus support from the conservative National Action Party, or PAN, which proposed its own more ambitious energy-reform proposal last month, are widely expected to be enough to secure the needed two-thirds majority in the Senate and Chamber of Deputies to change the constitution, the Times said.
The leftist Party of the Democratic Revolution, or PRD, has said it will not support the bill.
Andres Manuel Lopez Obrador, a leftist candidate in the past two presidential elections, called any privatization Pemex the \"theft of the century.\"
He called on opponents to rally in Mexico City Sept. 8.
Pemex was created March 18, 1938, when President Lazaro Cardenas sided with striking Mexican oil workers and expropriated and nationalized oil and gas fields from U.S. and Anglo-Dutch operating companies and changed the nation\'s constitution.
In retaliation, many foreign governments closed their markets to Mexican oil. But in spite of the boycott, Pemex developed into one of the world\'s largest oil companies and helped Mexico become the world\'s seventh-largest oil producer.
The expropriation is celebrated nationally every March 18.
But being counted on to provide a third of government revenues has led to years of under-investment, the Times said.
Pemex output has fallen by a quarter in the past decade to under 2.6 million barrels of oil a day.
Mexico must import almost half its gasoline -- mostly from the United States. And despite having some of the world\'s largest shale-gas reserves, the country imports one-third of its natural gas.
Pena Nieto said Monday night his reforms would reverse that decline, boosting oil production to 3 million barrels a day by 2018 and 3.5 million by 2025. Natural gas production would jump from 5.8 billion cubic feet to 8 billion cubic feet by 2018 and 10.4 billion cubic feet by 2025, he said.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today mexico moves to open oil industry to outsiders Arab Today, arab today mexico moves to open oil industry to outsiders

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 08:51 2017 Saturday ,25 February

Shaking off dieselgate, VW races back into profit

GMT 08:48 2017 Saturday ,25 February

France's Macron takes on critics over 'vague' programme

GMT 10:10 2017 Friday ,24 February

France's Macron gets boost, but election is wide open

GMT 12:38 2017 Thursday ,23 February

Lower fares hit Qantas first half profit

GMT 10:57 2017 Thursday ,23 February

Chief executive out at Paramount Pictures

GMT 07:26 2017 Thursday ,23 February

A peek inside Qatar's 'gas capital of the world'

GMT 11:26 2017 Wednesday ,22 February

Dutch corporate takeover defences tough to breach
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday