Article Image
IPFS News Link • Mexico

Mexico To Open The Floodgates To Foreign Oil Companies

•, By Trisha Marczak

Mexico’s president is calling on lawmakers to pass legislation that would allow foreign oil companies to tap resources in the now-privatized Mexican oil industry, opening up the doors — partially — to companies like Shell and Exxon, which have long eyed the nation’s dense oil resources.

President Enrique Peña Nieto isn’t ridding the nation’s privatized oil industry. Instead, he’s allowing international companies a piece of the pie, yet not enough to drain the Mexican government-owned Pemex Oil, whose revenue makes up one-third of the government’s budget.

While Pemex has been deemed a failure of a company, one that has fallen short of goals and failed to operate for maximum extraction, it did do its part in terms of shallow crude oil extraction. It’s the company’s shale oil, only accessible through fracking, that has stood in the nation’s way of maximum profit.
 According to the Canadian Broadcast Corporation, the company’s production has decreased by 25 percent in the last 10 years. Half of the remaining 14 billion barrels of reserves are found in shale formations.