Unknown or isnvalid code provided

Mexico’s Pemex Could Be Another Casualty of AMLO’s Energy Nationalism

Mexico’s Pemex Could Be Another Casualty of AMLO’s Energy Nationalism
Cars line up at a Pemex gas station in Merida, Mexico, Feb. 13, 2022 (photo by Artur Widak for NurPhoto via AP).

Russia’s invasion of Ukraine combined with the geopolitical instability it caused made 2022 a great year to be an oil major. Supply chain shortages and Western sanctions on Russian energy caused oil prices to surge, after which they leveled off at prices higher than their average over the past 10 years. As a result, Exxon made $56 billion in profit. Chevron made $36 billion. Shell made $40 billion, its highest profit in over a century. Commodity traders who move oil around the world also notched record-high profits. The numbers have sparked a wide debate over the fairness of these windfalls, how those companies are spending that money, and how it should be taxed.

And then there is Pemex in Mexico. While nearly every other oil major around the world stumbled into huge profits, Mexico’s state-owned oil company struggled financially and enters 2023 with questions about its long-term viability hanging over it.

Pemex owes about $10 billion in debt payments to creditors in 2023, almost half of that in the first quarter of the year. When it tried to raise $2 billion in bonds to refinance some of that debt last month, the company had to promise to pay over 10 percent interest to attract enough buyers. Those high rates come in spite of the fact that the company’s debt is supposedly fully backed by the Mexican government.

Keep reading for free!

Get instant access to the rest of this article by submitting your email address below. You'll also get access to three articles of your choice each month and our free newsletter:

Or, Subscribe now to get full access.

Already a subscriber? Log in here .

What you’ll get with an All-Access subscription to World Politics Review:

A WPR subscription is like no other resource — it’s like having a personal curator and expert analyst of global affairs news. Subscribe now, and you’ll get:

  • Immediate and instant access to the full searchable library of tens of thousands of articles.
  • Daily articles with original analysis, written by leading topic experts, delivered to you every weekday.
  • Regular in-depth articles with deep dives into important issues and countries.
  • The Daily Review email, with our take on the day’s most important news, the latest WPR analysis, what’s on our radar, and more.
  • The Weekly Review email, with quick summaries of the week’s most important coverage, and what’s to come.
  • Completely ad-free reading.

And all of this is available to you when you subscribe today.