Foreign Policy Blogs

Greenspan Suggests Privatizing Mexico's Oil Industry

Alan Greenspan, former Chairman of the U.S. Federal Reserve, said recently that Mexico should privatize its oil industry to raise production through increased capacity for exploration. Greenspan stated that Mexico's declining oil production could lead to a major fiscal crisis in the country. Mexico is the world's 9th largest exporter of crude oil and a key supplier to the U.S. Petroleos Mexicano (PEMEX) is the state-owned, nationalized petroleum company.

Former Mexican presidential candidate Manuel Lopez Obrador has voiced his opposition to Greenspan's recommendation, and despite Greenspan's global stature, it is not clear that his comments will be well-received or have any impact on policy decisions in Mexico.