Newly-elected Mexican president Enrique Pena Nieto campaigned on the promise to open up oil exploration to foreign and private companies. Pemex, the state owned oil monopoly, has controlled all petroleum-related activities in Mexico since the expropriation of all oil reserves and foreign oil companies in 1938. It has been a major source of income for the government for decades, and a matter of pride to many millions of Mexicans. There are also constitutional issues that could prevent this from taking place, so the courts will also be involved.
If Pena is able to push this through Congress it is sure to be protested by many. There is no argument that oil production has been in decline for nearly a decade, and that the government (Pemex) doesn’t seem to have the funds available to do what is necessary to remedy that. But does the country really want to lose their identity and autonomy, for which there is such pride? Stay tuned to this story – it will have a major impact on Mexico in the coming years