On August 13, Mexican president Enrique Peña Nieto addressed his nation, introducing his proposal for the reform of the country’s energy sector. Petróleos Mexicanos (trademarked and better known as Pemex), the state-owned monopoly in place since 1938, has faced declining profitability in recent years, and without reform, projections for the company’s future are grim. Because of nationalist passions, this is a sensitive issue in Mexico. Bearing this in mind, in his address, Peña Nieto appealed to the country, stressing that reform of the energy sector is the only viable path forward for Pemex and Mexico.

Despite its current place among the top-10 oil exporters in the world, Mexico remains on the path of becoming a net oil importing nation within the next decade. All three of the country’s leading political parties acknowledge this reality and the need for deep, structural changes to the Mexican energy sector. Without profound reforms, the hundred-year-old link between the oil sector and the government will continue to politicize the debate-and limit the Mexican Congress’s ability to enact the improvements that will most benefit Mexicans.

via Mexican Energy Reform: Politics and Predictions | Center for Strategic and International Studies.