While oil prices continue to rise, Mexico is debating how to maximize oil profits and modernize its aging oil industry. The oil industry, nationalized in 1938, is one of the pillars of the Mexican economy and an icon in Mexican history. In spite of this, the industry has experienced operative, technological, and financial problems that have placed Mexico, an oil-rich country, in a position of energy dependence. The state-run company, Mexican Petroleum (PEMEX), requires significant restructuring. The debate resides on how to do so.
The prelude to the debate started in early April, when President Felipe Calderon presented a bill that was considered a major reform to the Mexican oil industry. Two days after the bill was presented, opposition legislators closed the podiums in both the Senate and the Chamber of Deputies. Indeed, the initiative presented by the executive branch generated much controversy and the closure of Congress caused strong reactions that resulted in a political crisis. Nevertheless, major political actors‚ the presidents of the parties, leaders of opposition groups, key legislators, and high-ranking public officials‚ agreed to a process of deliberation through a democratic and inclusive debate.
The Senate is now hosting a series of debates that started on May 13th and that will last 71 days. During these debates, the most influential political actors in the country will present their positions to Congress‚ the institution in charge of actually making the necessary changes, including Constitutional reforms. They will be joined by experts, academics, and other leaders of Mexican society.
The results of the debate must be closely followed. Indeed, Mexico is one of the world's major suppliers of oil and several countries, including the United States, might have something to gain‚ or lose‚ from any reform to the Mexican oil industry.
