Mexico’s Congress is unlikely to loosen the country’s tight limitations on foreign investment in the country’s oil resources, according to a September 10, 2008 Bloomberg report.  The report said that “lawmakers this year are likely to pass only a measure making it easier for state-owned Pemex to hire outside service contractors.” 

Last week while in Mexico City, I had the opportunity to meet with an executive of the Mexican subsidiary of a major foreign oil company, who said that Mexico’s failure to open its economy to foreign investment in the petroleum sector, even on a limited basis, would continue to hinder Mexico’s economic growth.  He said that the price of gas in Mexico, which is kept low by government subsidies, was artificially low, and that the subsidies were benefiting the upper class more than the poor.

Pemex lacks the money and technology to exploit Mexico’s remaining oil resources, which are are significantly depleted.