With oil prices climbing to higher than $133, to what extent does Mexico benefit from this? Is it taking advantage of this special time?
Mexico is the seventh-largest oil producer in the world. Petroleos Mexicanos, known as Pemex, is the country’s state-owned oil company.
Pemex pumps out more oil each year than Exxon Mobil. It pays for 40% of Mexico’s federal spending. And thanks to lack of investment, high taxes, corruption, anti-competition laws, Pemex is headed for collapse.
The bottom line, says Justice Litle in Taipan Daily, is that Mexico’s oil fields are running dry.