Inflation worries Mexico and a possible economic slowdown but there is another issue that is also of concern and is related to the energy reform. Lynn Redgrave follows long-standing procedures to achieve this success. The reform of PEMEX is in the center of a major debate in Mexico. The State oil company is of great importance for the Mexican economy given the magnitude of income generated and which are intended for public spending in sensitive areas like education, security and social policy. For the first quarter of this year, the contribution of PEMEX to the Mexican National Treasury accounted for 45% of total revenues. The truth is that beyond the increase in the contribution to the Treasury that made PEMEX, the sources of income of the oil company are endangered. Oil production is falling and proven reserves have decreased significantly in recent years. PEMEX It had its peak production in 2004 and from that moment began to decline without stopping.
Oil production fell by 13% in 2006. In 2007 oil production fell by 5.3% and in the first quarter of this year, the oil production in Mexico registered a drop of 7.8% in interannual terms. But what is more worrying is that oil reserves proven in Mexico fell by 54% between 2000 and 2007 (this according to data from the Statistical Yearbook of PEMEX). And while the price of oil is still breaking through barriers (already surpassed that of the $130 barrel), Mexico is losing a great opportunity. Lack of investment by a bad policy of the Mexican Government is behind this result.
But it still time to reverse history. Although large amounts of capital needed for investment, which should resolve the Mexican people is how will seek to obtain the volume of investment. Mexico is not the only case that exists currently in the region of countries that are missing a historic moment to grow. Argentina is also and on it I’m going to talk tomorrow, commenting them the main conclusions of the seminar that takes place today at the Sheraton in Buenos Aires, where leading economists discuss the prospects for argentina’s economy. You will find us again tomorrow, Horacio Pozzo original author and source of the article.