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View Diary: Calderon's Privatization Plan for Mexico's Oil (31 comments)

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  •  From what I can tell... (0+ / 0-)

    ...the plan is just to move away from a state-run monopoly to a more privately-managed monopoly.  That's not likely to help much, either with corruption problems, or the state of Mexico's oil industry.  If they want to improve innovation and get some more life out of their fields, they should be examining ways of breaking up PEMEX, selling exploration/exploitation rights in lots, etc.  The trick of that strategy is making sure that the share of oil revenues you give up isn't greater than what they were spending anyway by running the company themselves.  But by taking management out of the hands of government bureaucrats, they're more likely to get more money out of their investments, particularly if they're having problems with corruption/cronyism/fraud/etc.  Of course, those issues aren't really going to be resolved without further strengthening of Mexico's legal system.

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