Interesting developments in Mexico's oil industry:
The legislation, which won final congressional approval on Thursday afternoon, declares that Mexico still owns its oil. But it allows private businesses to drill for oil and natural gas in partnership with the state monopoly, called Pemex, or on their own, returning international oil companies to territory they were kicked out of 75 years ago.. . .
The goal, Mr. Peña Nieto’s aides say, is to stimulate Mexico’s sliding oil production and vault the country into the developed world by tapping vast pockets of oil and natural gas deep under the earth and sea. Foreign oil companies have quietly lobbied the government to open up for years. Pemex, short for Petróleos Mexicanos, is known for inefficiency at best and corruption at worst.. . .
Mexico’s oil production has declined by 25 percent from its 2004 peak, to just over 2.5 million barrels a day. Pemex is spending more to pump less: Investment has more than doubled in the same period, to more than $20 billion a year.That is from a NYT article by Randal C. Archibold.