Comments on: With state oil company Pemex behind on payments, small suppliers face financial crisis

By: jim

jim — Sun, 22 Dec 2024 12:37:56 +0000

Mexico’s finances would greatly improve by declaring bankruptcy on Pemex debt. If you can’t pay suppliers, you can’t service $100 billion in debt. The coming global recession will send oil prices much lower and cause severe strain on Mexico’s finances if this albatross isn’t dealt with.

By: Glen Ulrich

Glen Ulrich — Sat, 21 Dec 2024 17:35:52 +0000

In reply to Daniel Houck.

having been a large budget-owner in a past life, it would be a lot of fun to get a hold of those current finances – infrastructure alone would be my first target for reductions – i.e. do we really need a retail station every 500 meters? what was/is the projected ROI for that refinery in Houston?

it’s amazing how expensive Pemex products are, related to companies’ that are privatized (and don’t get me started on CFE)

By: Daniel Houck

Daniel Houck — Sat, 21 Dec 2024 15:43:47 +0000

There is only one solution to this problem of chronically corrupt and mismanaged Pemex. It is the same solution that turned TelMex into an asset rather than a liability.

Privatize it. Require majority ownership to remain in Mexican hands. But subject it to the discipline of the marketplace instead of the unaccountability and core incompetence of government ownership.