The battle for PEMEX
energy reform as seen by a Mexican oil worker Kristin Bricker
Narco News
November 14, 2008
Original: November 4, 2008
Translation: Hermann Leyens
Collective Hive : Horse Troy light The Mexican Congress approved reforms to the state-owned oil monopoly Pemex in late October 2008. Although details of the reforms have not yet been published in the Official Journal of the Federation of Government, there are details that have leaked to the media.
The biggest reform of the talk so far assigned specific blocks in the Gulf of Mexico to private companies to drill and explore. It has allowed private companies to explore and drill for years in the Gulf of Mexico, but the first time that exclusive rights are granted to specific block. It was a most controversial parts new laws, and opposition leader Andrés Manuel López Obrador called for using language that specifically prohibits the government allocated to private companies exclusive blocks. See this practice as an initial step toward greater privatization of Mexico's oil industry. However, Energy Secretary Georgina Kessel, argued : contractors will be given specific areas so they can devote to work and perform the required tasks, " because otherwise it would not be possible if is drilling a well in one place in particular, and another company comes exactly drilling in the same place, then it is impossible to have a drilling contractor in a given area with the situation " .
Other important reforms include the addition of 4 independent members to the board of directors of the company and subsidies for companies that complete projects sooner than stipulated in the plan or give PEMEX technology.
The reforms led to lukewarm reactions from the private international oil industry, which hoped to sweeping changes in Mexico's energy sector.
The new laws represent a minor setback for President Felipe Calderon and his National Action Party (PAN), which called for the privatization of PEMEX in April. Calderón wanted to let private companies build and possess and transport oil refineries. The Institutional Revolutionary Party (PRI) supported the efforts of the PAN but refused to be called "privatization" reform proposal during an election season.
Despite the setback, lawmakers vowed to continue with the campaign to privatize PEMEX, which would require constitutional changes. Sen. Carlos Lozano of the PRI, told Reuters: "The constitutional changes are not part of our agenda now. It is a three-year agenda. "
The business community seems to agree that while the new laws do not change much, the fight to privatize PEMEX has not ended. "What we have adopted is just an affirmation of the status quo," said energy analyst George Baker . "It's a placeholder for true market-oriented reforms."
One thing all agree on is that country urgently needs reform PEMEX, the problem is what kind of reform. PEMEX infrastructure has on average 25 years. The PEMEX refining capacity is seriously inadequate. The overall production has fallen by at least 10% over last year.
Laura Carlsen, Americas Program Center for International Policy , argues that government officials have sabotaged PEMEX to pave the road to privatization:
Ironically, the same politicians proposed delivery of the refining and other operations of PEMEX to foreign companies, are responsible, at least in part, the current inability of the parastatal. What none of the reports mention is that much of the deterioration of Pemex was given under the same regime political party that now claims that the only way to save the hiring company is given in private sector operations. Calderon served as energy secretary in the administration of Vicente Fox from 2003 to 2004. PAN governments have held power for nearly eight years, during which PEMEX brand sales exceeded due to high international oil prices. Why the money was not reinvested in the oil company in order to prevent the current crisis?PEMEX
The bleeding of PEMEX was a conscious decision taken by political and administrative two reasons. First, the funds siphoned giant oil masked the true state of the Mexican economy. The Ministry of Finance used PEMEX's income, especially windfall in recent years for which no target was set in the budget approved by Congress, as a small box. Much of this money went to repay foreign debt. One part disappeared in corruption as in the case Pemexgate, which diverted funds to finance the PRI's presidential nomination. And the rest is finished in pet projects for the presidency. Successive regimes were stripping PEMEX for political purposes with little or no accountability to Congress or the Mexican people.
Second, neoliberal administrators intentionally sought to create a bleak picture of the parastatal in order to grow their already arduous defense of privatization. Only by presenting a doomsday scenario could be expected to approve key legislative reforms regarding the oil industry that finally satisfy the objectives for structural reform designed by the World Bank, the U.S. government and Mexico's neoliberal leaders.
The battle is far from over. Energy is a central component of the Alliance for Security and Prosperity Partnership of North America [SPP-SPP], which is directed by a group of thirty corporations - including Chevron Texaco, Sunoco, and ExxonMobil. The SPP calls for American energy integration. Other corporations behind the SPP includes a number of transport companies to which they are undoubtedly salivating at the prospect of opening the oil transport to the private sector in Mexico by Calderon's energy reform.
These neoliberal corporate actors will not decrease the pressure to privatize Mexico's oil, nor will the conservative forces in Mexico. The rhetoric of political parties on the energy reform has been intentionally unclear because different participants call for financial and political benefits. Just before the Mexican Congress considers further reforms, Narco News Gomezcaña met with Eduardo Morales, a former PEMEX worker and now an economist for the National Union of Workers Confidence Petroleum Industry, AC (UNTCIP AC), a PEMEX workers' union, to understand what is really at stake in the current debate on the future of Mexico's oil reserves.
Narco News: Can you explain the current situation of PEMEX? What parts of Mexico's oil industry have already been privatized and what are being in the public domain?
Gomezcaña: the concern arises about the meaning of "privatization." For that would have to refer to a dictionary. Privatization is to make private what has been monopolized by the state, so called public. Given the circumstances in PEMEX since 1973, have been privatizing some substantive parts of the oil industry. Why do we mark 1973 as the initial stage? Because Mexico has become oil exporter before that date, prior to 1974 specifically. Mexico generated oil for its domestic benefit for domestic consumption. Following the U.S. no received oil that sold the Arabs, and the peak in U.S. that occurred in 1970, USA was the need to hit the small countries to developing countries, countries of the South, in order to attract oil and production are of the same product. Then, in 1974, begins the overproduction in Mexico to sell to U.S. And strategic purposes but not for commercial purposes. This started the privatization process.
came in subsequent years the privatization process of substantive activities such as petrochemicals. The petrochemical industry was the spearhead of privatization.
neoliberal governments, from Carlos Salinas de Gotari, broke the petrochemical classification of primary and secondary products, which is an aberration in the world because there is no such classification. So with the new classification, in 1985 sixteen petrochemicals were classified as secondary to the purpose of evading the Mexican Constitution. The Constitution said that will power the state regulation of oil commodities. So make them side to begin to develop private initiatives. As it does not work, the following year 32 more classified, and as it does not work, make some petrochemical SA abnormally, creating a resistance movement in the eighties and both half of the decade. This stops the resistance movement and return to PEMEX activities without restructuring. We buy some plants that are now obsolete and even some plants that have not been used so far. Remained intact after they were installed. No maintenance was given, not given up and use. What caused it was neoliberal government that Mexico become an importer of petrochemicals.
After this comes the privatization process natural gas. In a first stage, basic petrochemicals, according to the company ranks, is the gas. The pipeline transport it to private dealers. The pipeline, as we know the oil anywhere in the world, require rigorous protection. For example, maintenance free, requiring 'pigging' [specialized inspection and removal of debris from inside the pipeline], activities that are not making private companies who received concessions. So these companies charge for delivering the product, but do not give maintenance to the tubes. This is for the gas. For the other products that will accompany the pipeline we must maintain them Mexicans. It really is a gift that we are making to private. Then comes the granting of domestic gas meter to the home to French firms, English companies, first in Mexico City and subsequently in other cities such as Guadalajara and Monterey, and move forward gradually.
With this, they amended Article 27 of the Constitution to the effect that the private sector could market the products of the gas. But governments like Fox and more cynical, or even, as we say in Mexico, we ' the eye of the male plug ' , they begin to generate cynically activities that will go into the hands of transnational companies, not only for domestic private enterprise, but at the hands of international. Fox is launching a public tender in 2000 to the effect of exploring, exploiting and marketing the natural gas of our country, specifically in the Burgos Basin, which is a new site was found. We have complained to Repsol, in this case, derivative contracts are also defendants. This is a clear process of privatization. Mexico and want to deceive the whole world saying that this is not a farm when they take the underground, and call it a development. They are marketing. There is a contract now publicly denounce whereby Repsol wants to sell gas to Peru, and is the gas in our Cuenca de Burgos.
Then, obviously, the privatization process has been within the oil industry and now Calderon fits the same pattern. Calderón is pushing a privatization to justify all the anomalies that previous governments have done to legalize the whole process to clear the error. But it's done and the damage we have done to the Mexicans. Then, Calderón also aim to this, the labor side, lay off 30,000 workers in the industry oil with a project that is launching right now called Project SUM [1]. Right now we have a workforce of 140,000, and want to fire 30,000.
Narco News: Can you explain the role of the Democratic Revolution Party's center in the debate?
Gomezcaña: The problem of our country is that the PAN and the PRI (which was the previous government before PAN) currently has the majority in the House and we are depending on the PRI may be the trigger that is accepted or not accepted the proposed privatization Felipe Calderón.
The PRD proposal brings nationalist. There is a strong partisan issue there with them. The PRD brings a very strong division because on one hand as it wants to co-opt the government feared that they might vote in favor of privatization, the Members who are of the PRD, which are part of them.
However, it is very difficult to give this. The PRD is on a block nationalist process. Andrés Manuel López Obrador is now leading the movement in defense of oil, regardless of their follies and their rantings or political bubble that exists around it is the only one who has had the good sense to make a social movement mobilization is stronger there in our country in defense of oil nationalization. This is being done outside the PRD. The PRD is supposed to have a project with the FAP (Broad Progressive Front, a coalition of center-left parties), but Lopez Obrador is walking on his own and with the followers he has. But it is the only form of resistance that exists in our country, the only form of resistance that exists today, which is raising Andrés Manuel López Obrador.
oil Around the proposal is good, but Lopez Obrador's proposal, rather than the PRD. If the proposal of the PRD in short, along with the other two games of the FAP - Party Convergence and the Labor Party - is a proposal that even surpasses that of Andres Manuel, and if we add together is the only way forward. The people of Mexico has been added to this proposal and is hopeful he can stop the privatization.
We work with part of the proposal to make them, whether we be nonpartisan give some suggestions to them, is that everything is part of the state. It's part of our proposal and participate in such forums as the Plan Puebla-Panama, to defend against the Puebla-Panama Plan, is precisely that strategic areas that are not service areas, areas that are not marketable. Energy must be the guarantor of the country's development. The power must be part of a national strategic goal. We do not have to use it as an asset to be sold, is a resource for growing our own nation. In that sense they all proposals that have been made technically. Ranging from primary production, from exploration to marketing. There should be no foreign ownership. The whole proposal is that sense global. The petrochemical industry recovers, the scan have the resources, the maintenance of the facilities have enough budget to get ahead, that refining grow.
There is a deception in our country. The electronic media, television, the government is attacking very strongly saying we want to refineries. If we also want. Are already using our same strategy, since a specific date. The day began with a campaign using the same words to us. We also want refineries, but we want Mexico refineries. Telmex do not want another [2], we do not want loot to Mexico again.
strikes me that if we look at the gas stations that exist in Guatemala, which exist in El Salvador, which exist in Honduras, they have the minimum conditions of safety and which we currently have in Mexico. Is that why? Mexico is because the resource is under state control.
For example, there are signs on the floor. In Mexico there is a gas recovery in each shot of gasoline, then a car comes, they remove the cap, is inserted into the valve, there is a cap that prevents gases from escaping and contaminating the environment. In none of these Central American countries there is a gas recovery. The distance between the water tank which stores the product and pump, for example, in Guatemala is lejísimo, causing pollution. Signaling, height must have gasoline clinics that if a car crashes, does not cause any spillage of gasoline, does not exist. No product at all stations pulled, which in Mexico is called. There are no security measures are being taken. Why? Because Texaco does not permit, because Shell does not allow it because Exxon does not allow it, because all these companies are outside the law across the country. These companies have the power of the transnationals, the U.S. power, the power of the great powers. In these circumstances we will not do to be subject to the rules.
Narco News: How is bound privatization PEMEX Puebla-Panama Plan, now known as the Mesoamerica Project, and U.S. hegemony?
Gomezcaña: Look, I think that Mexico is a laboratory. It is a neoliberal strategy that goes beyond the Plan Puebla-Panama, alias Mesoamerica Project. Puebla Mexico is not just and what is south of that State. In all states there is privatization and what you want to use as an example for application in all other countries. If they get anywhere in the petrochemical industry will be able to scrub to Costa Rica [3], if they manage to privatize the refineries in Mexico, they will be able to insert the refinery had in Costa Rica. Obviously they're doing experiments.
In the U.S., there is Deer Park, a PEMEX refinery where he allegedly has a stake of 50%. To date, in memory of PEMEX results work there have a cent, not a single dollar, not a single penny Mexican nor gringo us where we benefit from that investment. I imagine nothing more that comes to building a Shell refinery in Mexico, that Mexico delivered in the same country as our product, and they delivered us the finished product to international market price.
That experiment is that they want to apply in all Central American countries. So Fox insisted both that now invest in a refinery in Costa Rica, it is part of Plan Puebla-Panama. That can be replicated by other similar experiments everywhere.
Narco News: How do you respond to political statements in the media that Mexico was running out of oil, so we have to privatize PEMEX before it happens?
Gomezcaña: Peak oil is a reality. Peak oil is a drop of oil. The global peak is coming later this year. In Mexico, we're living in 2009. Mexico stop producing oil. There are more sites.
The problem is that there are alternative projects. The few alternative projects that may exist for energy alternatives are giving them to foreigners. And in the case of Mexico, this is registered in the Puebla-Panama Plan, here in La Ventosa, rather it is the company [4] that under his command a strategic resource for electricity, which is responsible for invest in wind energy in La Ventosa, our wind - although it sounds abstract - is given to aliens such as Repsol to install windmills in this area. Obviously earnings will not be for Mexico, the benefits are for them, because they are going to take the very thieves. Repsol even lacks the infrastructure for these projects, Repsol contracts with other global companies, like Halliburton and we are giving Repsol and Halliburton projects because they are the darlings of the neoliberal governments of Mexico specifically.
happens in Mexico is very important. In no country would accept the conflict of interest that exists with the Secretary of the Interior of Mexico. Little boy is the son of Felipe Calderón, Juan Camilo Mouriño has key interests in energy issues of our country [5]. Is English. It is encouraging that in our country to invest the English. They have stuck interests, have the Nose stuck here in Mexico. So that's the big problem [ N. T.: interview before the plane crash that killed Mouriño].
And the bottom line is that there are two completely different projects: the South of us and them North. We of them down and powerful. Those who defend all our resources, one of which is oil-on projects like the Plan Puebla-Panama, and those who want what is ours.
NOTES:
[1] The SUMA Project is a US-rigging plan and Mexico to "synergize" operations of PEMEX. The National Union of Workers of Petroleum Industry Trust, BC, says lead to lay off workers and reduce a company PEMEX to simply administer contracts and investment portfolios in the Mexican oil industry. Also eliminate the Corporate Office of Engineering and Project Development PEMEX, ostensibly to hand over control of engineering and project development to the private sector. The union estimates that between 30,000 and 60,000 workers would be dismissed as this project.
[2] When the Mexican government privatized the national telephone company, Telmex, the monopoly was sold to Carlos Slim, who, thanks to the benefits received from privatization, became the richest man in the world.
[3] Costa Rica also has a state oil company Coll.
[4] The electricity is also nationalized in Mexico under the Federal Electricity Commission (CFE).
[5] In 2002 and 2003, while working as an assistant to then-Energy Secretary Felipe Calderon, Mouriño signed by at least three energy contracts as a representative of the Mexican transport company from his father Ivance Specialized Transport. The contracts were for services provided to PEMEX. Andrés Manuel López Obrador, who presented the contract to the media, said: "He got contracts for millions of dollars given directly to benefit the family business."
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