Oil spill

An oil spill and fire at an offshore platform operated by Pemex, the Mexican national oil company, hasn't gotten much publicity here, but it's apparently a big mess for the environment and a big black eye for Pemex.

The trouble started with

a collision that killed 21 workers and touched off fires that have been extinguished only to ignite again. The well apparently is belching flammable natural gas and toxic hydrogen sulfide--a nasty mix for sure.

As the Herald Tribune article above indicates, some people are seeing this as an example of Pemex incompetence.

Meanwhile, the lost oil production is costing Pemex $400,000 a day, according to El Financiero and other media outlets.

Some of the spilled oil has been contained, but some is showing up on Mexican beaches, where cleanup crews reportedly are excavating the contaminated sand for disposal. Somewhere.

PEMEX

Apparently Calderon's new tax and revenue package referred to in an earlier post was designed to reinvigorate Pemex. The national oil company will get to keep more of its revenues, presumably to reinvest in the company. To make up for the lost revenue to the government, Calderon got the Congress to agree to a retail tax on gasoline, which is probably not one of the more popular ideas on the streets of Mexico.

But if there's any serious privatizing being proposed, I'm missing it.

Read a commentary written by an Exxon Mobil official here:

Petroleum World guest editorial

Zocalo update II

Addressing a gathering described as consisting of "tens of thousands" of people, Lopez Obrador said he would organize non-violent civil disobedience to stop privatization of the petroleum industry.

It is not clear to me how much privatization is proposed or even likely--A lot of Mexicans who want nothing to do with AMLO or his party might strongly oppose privatization of oil. Its nationalization in the 30s is considered a hallmark achievement of the revolution.

Of course, Mexico's national oil company (PEMEX) needs capital. If that capital comes from other countries, multinational energy companies, etc., it will involve conditions--share of profits--that some would call "privatization."

Any thoughts?