Critical assessments of Mexico’s oil industry in general and of its state-owned oil company, Pemex, in particular are commonplace, often with good reason: Both face many challenges in overcoming the historical legacies that have long undermined their performance. Nevertheless, when President Felipe Calderon’s term in office ends on Dec. 1, he will be leaving both in better shape than when his presidency began six years ago.
True, there have been strategic misfires under his administration. Pemex’s opaque expenditure of almost $2 billion for an increased stake in Spanish oil company Repsol stands out, both for the lack of strategic oversight it highlighted but also the naivety it exposed in terms of the purported desire to use the deal to gain access to deep-water drilling technology. Worse, since Argentina’s expropriation of Repsol’s YPF shares in April, the company’s stock price has dropped and may cause Pemex to write down a loss. ...
To read the rest, sign up to try World Politics Review
- TWO WEEKS FREE.
- Cancel any time.
- After two weeks, just $18 monthly or $118/year.
Request a free trial for your office or school. Everyone at a given site can get access through our institutional subscriptions.
- To Rebound After Defeat, El Salvador’s ARENA Must Move Beyond Fear
- NSA Leaks Fallout Will Fade Faster Than Hit to U.S. Pride
- Strategic Horizons: Amid Debate, U.S. Shares Drone Approach With Partners
- Cuba’s New Foreign Investment Law Is a Bet on the Future
- World Citizen: Venezuela, Once an Ideological Magnet, Now Worries Region