Mexican Oil: A Nixon-Goes-to-China Moment? The Tribune-Review
go to original August 25, 2013

Mexican President Enrique Pena Nieto still needs to fill in details about his intriguing proposal to open up more of Mexico's energy industry to foreign investment. The fine points will determine whether the plan he announced this month will indeed attract outside capital.

But based upon early reports, the new leader's ideas for reforming an industry that Mexico long ago nationalized are significant.

First, a substantial opening of the nation's energy operations could flow more capital into Mexico, so it could produce more of its undeveloped reserves. The production would almost surely translate into an uptick in Mexico's economy. In turn, that would help the United States. A more stable Mexico means a more stable border.

Second, allowing foreign investors to produce Mexican oil reserves would give U.S. firms greater access to a nearby market. Foreign firms have some rights there already but they are limited. As a result, energy companies in the U.S. largely have chosen not to work with Pemex, Mexico's state-owned oil company.

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