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The Energy Reform

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The Energy Reform

Background:

2006. PEMEX becomes the largest company in Mexico and one of the world's largest oil companies, both in terms of assets and income. Gasoline launches Premium Ultra Low Sulfur.

2007. On July 10 a terrorist attack occurs in Queretaro and Guanajuato pipelines attributed to the Popular Revolutionary Army. On September 10 another attack occurs in Veracruz. No one claimed responsibility. In October, there was an accident on the Kab-121 platform in which killed 18 offshore oil workers due to the failure of the life safety systems, on entering a cold front with winds of 130 kilometers per hour. The accident spilled 422 barrels of light oil and natural gas. Working on the reconfiguration of the Lazaro Cardenas refinery, the oldest national system. It promotes the recovery of the domestic petrochemical industry and aims to increase gas production to meet domestic market demand and thus reduce imports.

2008. The Congress discussed the issue of energy reform, not so far been submitted officially some initiative.

-Privatization Debate:

The debate on reforming energy (electricity and oil) was restarted because the PRI, in its national convention resumed on energy issues.

What is important for large companies is to be able to enter the business of finding oil, exploration and replace reserves produced. Looking for this business because service contracts do not allow them to manage these reserves in their portfolios. But this will never happen and that would be very attractive for these big oil industries and the potential changes could represent billions of dollars in investments.

The proposed reform of the executive power is in the right direction, but must first approve changes in regulation, transparency and accountability, or otherwise worsen the situation of the oil sector.

Since PEMEX would be a company with the same infrastructure and the same vices, but with more autonomy and resources and that would be a setback.
Reviews:

In the opinion of former President Carlos Salinas de Gortari in an interview:

"Oil should remain in the hands of Mexicans, Mexican-owned and for the benefit of Mexicans," asserts emphatically the former president, to present your firm and clear position in the National Debate called Energy Reform.

The character who negotiated NAFTA, is convinced that the position of the PRI in energy reform debate should be similar to that supported against the president of the United States., George Bush, in that political and commercial negotiations for nearly two decades where the issue of privatization of oil was completely off the agenda.

The May 9 in an interview for the OEM (Mexican Editorial Organization) said the controversial former president and discussed with journalists highlighting the theme "oil" and called it "the delivery of foreign capital banks"

In this context, external Salinas confidence that the "true reformers of the PRI, committed to the great causes of the Nation", will know to act with a sense of historical responsibility for fixing its position and defending the oil belongs to all Mexicans and to benefit Mexicans.

For the political challenges confronting the ideas, expression of the PRI reformers will be very important in this debate and is a similar approach that Salinas himself defended for more than fifteen years before George Bush in a meeting when NAFTA was negotiated with North America.

Negotiating the Salinas closed argumentarle to George Bush that Mexico's trade ever not approve an amendment that would allow the oil could be owned by foreigners.

Mexico's President Felipe Calderon:

"We will be defending the nation and sovereignty, because strengthen strengthen PEMEX is Mexico."

Coordinator of the Breaking of the PRI in the Senate, Manlio Fabio Beltrones:

"What we need to strengthen Pemex does not revolve around it. We are determined to defend the heritage of the nation. "

Coordinator of the PRI faction in the House of Representatives Emilio Gamboa Patron:

"We look forward to the proposal of the Executive or National Action to analyze and discuss, to work together."

Former presidential candidate Andres Manuel Lopez Obrador:

"Traitors to the Motherland want to sell PEMEX."
President of the Foundation for Democracy Cuauhtemoc Cardenas:
"It requires a constitutional reform to improve the productivity of PEMEX."
National President of National Action Germain Martinez Cazares:

"The PAN does not fear political cost of energy reform"

Secretary of Finance Agustin Carstens:

Surplus revenues from high oil prices will consolidate the goals of economic growth in Mexico in 2008.

Inconsistencies:

The "Communist" countries have foreign investment in oil and big business have emerged have been developed as a country because of these coming from foreign capital.
The example of Brazil and Cuba that allowed the entry of private capital, Lazaro Cardenas performed the same oil-for technology. Experts say it is for development of the country and need not keep a closed mind about such a change that will ultimately be inevitable.

The position of the different social sectors are found due to the importance of electrical service for families, either by
Considered a basic necessity or for being one of the basic services where more is spent, and that any downward variation in the satisfaction of basic needs, forcing thousands of Mexicans, with precarious levels of welfare, to join the approximately 26 million extremely poor.

Besides being a basic need, electric service, including in the area of Housing and Services, is one of the concepts of statistical significance to measure welfare, because, as he believes the Bank of Mexico is one of 20 generic services where families spend the most.

Experts say that materialize the sale of this industry in Mexico, there would be a significant loss of jobs in the sector, but, if you create power stations and transmission and distribution activities, it could offset the reduction in labor. "Also Mexico wants to privatize the electricity sector to generate capital, the demand for electricity supply and expand distribution networks.
This could explain, to privatize the industry and raise fares, a fall in demand due to falling real wages, rising unemployment and poverty levels.

Conclusion
Felipe Calderon Hinojosa, said: "If we want jobs, we want to grow and compete, we bring investment to our country. Scare away investment, employment is scare."
On this basis we conclude that the issue of privatization of this sector is good for the country's proposal is on the table and the little information we feel it is necessary to investigate deeper and information to the public is lacking. The various sectors involved should be flooded with information that the mix with this topic. They also mention that the reform is a violation of the constitution as leftists, however as mentioned throughout this discussion countries need to open up new proposals for improvement can not be carried away by nationalism give up that which is "our only assets to foreign hands" we must expand our vision as a country and not let the Third World invade us and wait for countries with less potential exceed us in what for us would be the most important activity nationally.…...

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