Affect of the recent presidential elections

[Tucson]

PEMEX probably makes more money refining Mexican crude in Texas (and selling it to the highest international bidder) than they would in Mexico. After all, it is corporate profit that is the motivating influence here (as elsewhere). Maybe the PRI can "motivate" or offer incentives to PEMEX if they extend refining to a new location in Mexico, too. Sure would do wonders for the economic situation there. It still is a source of wonderment to the locals in Mexico as to why they don't have a refinery anywhere in their country, when they produce as much crude as they do.

[Isla Verde]

Originally Posted by Tucson

PEMEX probably makes more money refining Mexican crude in Texas (and selling it to the highest international bidder) than they would in Mexico. After all, it is corporate profit that is the motivating influence here (as elsewhere). Maybe the PRI can "motivate" or offer incentives to PEMEX if they extend refining to a new location in Mexico, too. Sure would do wonders for the economic situation there. It still is a source of wonderment to the locals in Mexico as to why they don't have a refinery anywhere in their country, when they produce as much crude as they do.

Over the years I've read that a large portion of PEMEX profits gets siphoned off to the federal government with very little left to improve the PEMEX infrastructure, including construction of refineries within Mexico.

[joaquinx]

Originally Posted by Tucson

It still is a source of wonderment to the locals in Mexico as to why they don't have a refinery anywhere in their country, when they produce as much crude as they do.

Mexico

Reynosa Refinery (Pemex) Reynosa, Tamaulipas
Minatitlan Refinery (Pemex) Minatitlan 167,000 bbl/d (26,600 m3/d)
Cadereyta Refinery (Pemex) Cadereyta Jiménez, Nuevo León 217,000 bbl/d (34,500 m3/d)
Tula Refinery (Pemex) Tula, Hidalgo 290,000 bbl/d (46,000 m3/d)
Salamanca Refinery (Pemex) Salamanca, Guanajuato 192,000 bbl/d (30,500 m3/d)
Ciudad Madero Refinery (Pemex) Ciudad Madero 152,000 bbl/d (24,200 m3/d)
Salina Cruz Refinery (Pemex) Salina Cruz 227,000 bbl/d (36,100 m3/d)

Source: List of oil refineries - Wikipedia, the free encyclopedia

[tepetapan]

Originally Posted by Isla Verde

Over the years I've read that a large portion of PEMEX profits gets siphoned off to the federal government with very little left to improve the PEMEX infrastructure, including construction of refineries within Mexico.

Pemex is part of and owned by the Federal Government of Mexico. To call it siphoning money is a lack of understanding. If you read the yearly Federal Budget of Mexico you will see Pemex supplies money to the Mexican people and has for decades. Last year the Federal Budget was set using proceeds from Pemex oil set at around $65 to $68 dollars a barrel. Mexican crude sells around $90+ dollars a barrel on average. Times hundreds of thousands of barrels a year..do the math.
Mexico is the 5th largest producer of oil in the world. They made the same amount of money from their oil last year as they did the year before and sold less barrels of oil. Why should they get all excited to produce more oil?

[TundraGreen]

Originally Posted by tepetapan

Pemex is part of and owned by the Federal Government of Mexico. To call it siphoning money is a lack of understanding. If you read the yearly Federal Budget of Mexico you will see Pemex supplies money to the Mexican people and has for decades. Last year the Federal Budget was set using proceeds from Pemex oil set at around $65 to $68 dollars a barrel. Mexican crude sells around $90+ dollars a barrel on average. Times hundreds of thousands of barrels a year..do the math.
Mexico is the 5th largest producer of oil in the world. They made the same amount of money from their oil last year as they did the year before and sold less barrels of oil. Why should they get all excited to produce more oil?

The production rate is currently several million barrels/day rather than hundreds of thousands/year. But here is why they should get excited about producing more oil (I couldn't quickly find a more recent plot):

[Tucson]

Thanks for the correction and the very useful information which I will be sure to bring to our Mexican friends' attention when we go back to Q. Roo in October. So, there actually are 7 refineries in Mexico (who knew?) and some of the PEMEX money is actually helping Mexicans. My eyes have been opened! I guess our taxi drivers don't always have all the answers (and therefore I shouldnt believe everything they say) and we shall enlighten them upon our return.

I don't suppose anyone knows how the PEMEX money is specifically helping their countrymen but assume such distribution or aid is linked to governmental programs, like healthcare services.

For the best and most accurate information, I always check with you folks at ExPat Forum.

[Longford]

Some of my thoughts regarding the OP:

Originally Posted by dongringo

I've lived in Mexicio, on and off for 15 years since 1962. Things have not changed much, although the Mexican peso is now again more or less the equivalency of 8% of the US dollar which it was for most of its years.

The various devaluations over the years have had harsh effects on most Mexicans but of little negative impact to foreigners, particularly those of us spending US$, because of favorable currency exchange rates.

Mexicans are still the foremost in badmouthing their own country and still need no help from outsiders.

Yes. There’s considerable discontent.

Aside from money, almost nothing ever affected my personal life style, and I doubt that it affected Mexican families, unless they hid their cash under mattresses.

Yes, a lot of stuff became more expensive, nevertheless, people kept smiling.[/QUOTE]

Inflation and the declining value of the currency has hit most Mexicans hard. For example, the number of persons living in poverty during the most recent two-year period has risen to above 50%. 10.5% of Mexicans are described as living in “extreme poverty” which means the urban poor survive on the approx. monthly peso equivalent of US$70 and the rural poor US$50.[/quote]

The current murder rate, which is barely above the homicidal rage of Mexico before the 1970's, never bothered anyone. Roads were a *****, but are now mostly comfortable freeways.

The rate of crime and violence has increased and the spike upward is attributable almost entirely to the war. Making comparisons of statistics, especially crime statistics, is a challenge because there’s no central reliable database and crimes are not uniformly classified. Although there are some excellent toll roads in Mexico, most highways don’t fall into that category and many are not in the best of shape.

Laws made it easier for foreigners to own Mexican properties, and the price of visas quintupled or more.

The process for expats purchasing property, particularly in the restricted zones, is still cumbersome. Regulations governing the issuance of visas will are in the process of being changed and some of the changes will be positive and others maybe not so. Time will tell.

If had to to see Mexico from a Mexican's viewpoint. Mexico is now better off than ever. That is probably why the recent election produced a new government. It is not better enough to satisfy its burgeoning class of wannabee consumers.

I doubt a majority of Mexicans will say the nation is now better off than ever. Certainly, Mexico has made impressive strides forward and a lot of that is the result of NAFTA and other treaties. Poverty is up, though. And there’s the inflation in the consumer products field. The new government is the result of the frustrations of people who are tired of 12+ years of war, terrorism, skyrocketing crime in some areas and a feeling that the nation is slipping back and not advancing forward. There was but once realistic choice in the election and I don’t doubt that there are many skeptical people who distrust the PRI based on it’s prior history. They’ve taken a leap of faith that today’s PRI is different from what they may have known 20 years ago.

The in place government failed, after more or less selling off the country, and some FOX bought it.

Who sold what and who bought it? The comment doesn’t make sense to me.

During all that time, I saw no changes that affected me personally, on a governmental basis, and I expect the new government to continue to be the same.

The “government” impacts the lives of everyone … in one way or another. Mexican or expat. It’s inescapable.

[tepetapan]

Originally Posted by TundraGreen

The production rate is currently several million barrels/day rather than hundreds of thousands/year. But here is why they should get excited about producing more oil (I couldn't quickly find a more recent plot):

I did look it up the other day but decided to go conservative in my numbers since I was too lazy to look them up again. The point is Mexico does not need more oil flowing, it is everyone else (USA?) who desires cheap gasoline. So who is getting excited and why? Mexico is no where near broke and in fact holds historically high amounts of cash reserves.
What is in it for Mexico to increase production 20%? Lower crude oil prices and less profit. Mexico´s debit : GNP is around 38%, Canada is around 80% and the USA debit ratio is over 100%. Then take a look at Europe. what a train wreck that place is. And all these people giving budget lessons to Mexico.
Historically high cash reserves and low debt. Pump more oil, why?

[Longford]

From what I've read several or more times, Mexico's oil reserves are declining rapidly and to preserve the flow of money from the sale of the oil and byproducts a huge sum of money is required to explore further and drill more. The nation has been unable or unwilling to allocate those exploration/drilling funds and that's why there has been, for a long time now, the suggestion that foreign companies be licensed/allowed to make those needed investments. The PRI had previously ruled-out further foreign investment/envolvement and the industry will be closely watching signs from the new President to see if he and the Congress will do something different.

[tepetapan]

Originally Posted by Longford

From what I've read several or more times, Mexico's oil reserves are declining rapidly and to preserve the flow of money from the sale of the oil and byproducts a huge sum of money is required to explore further and drill more. The nation has been unable or unwilling to allocate those exploration/drilling funds and that's why there has been, for a long time now, the suggestion that foreign companies be licensed/allowed to make those needed investments. The PRI had previously ruled-out further foreign investment/envolvement and the industry will be closely watching signs from the new President to see if he and the Congress will do something different.

This is Old news
August 18. 2011
Pemex, Mexico’s state oil monopoly, on Thursday awarded the country’s first private oil-production contracts in more than 50 years to two companies as it attempts to rise open the country’s heavily protected energy sector to private capital.

Pemex issues private oil-production contracts - FT.com

This is only a few days old
EXICO CITY - Mexico's state-owned oil company Petroleos Mexicanos, or Pemex, said Tuesday that it had discovered as much as two billion cubic feet of natural gas reserves in the deep waters of the Gulf of M Production tests reached 34 million cubic feet a day of wet gas, and 110 barrels of liquids, Pemex said.

Pemex said that the Kunah-1 well at a water depth of 2,157 meters was the firm's most productive well in deep waters during exploratory tests. The well allowed Pemex to identify five wet gas deposits at different drilling levels......

RIGZONE - Pemex Finds Natural Gas Reserves in Deep-Water Gulf

So I guess this type of news takes awhile to reach Chicago. Or may be they just do not care to write about Mexico´s reserves.