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https://www.vallartadaily.com/moodys-downgrades-pemex-to-junk-status/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+VallartaDaily+(Headline+News+from+Puerto+Vallarta)

Pemex is an inept and corrupt disaster and a major drag on the economy of Mexico.  Everyone pays far too much for fuel to benefit the few who feed off of this thing.

 

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Absolutly right. So sad that an oil company so big is can't make a profit. Same with CFE.  Problem is this president believes that these companies to the people of Mexico.

What they are actually is the rich retirement for those who can rob from them. 

One is waiting extradition from Spain right now.

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54 percent of Pemex revenues since incorporation were taken by the Mexican federal government and put into their federal treasury. Only in Peña's term was it dropped to 35 percent after the 2013 tax reform law started working well. So comparing it to any Worldwide privately owned  oil company is apples to oranges.

Could it have succeeded even with corrupt officals if restructured  decades ago instead of being a victim of legal parasites drinking of it's profits from the beginning to assist in financing federal spending?

1 hour ago, Mostlylost said:

Absolutly right. So sad that an oil company so big is can't make a profit. Same with CFE.  Problem is this president believes that these companies to the people of Mexico.

What they are actually is the rich retirement for those who can rob from them. 

One is waiting extradition from Spain right now.

Many hard working Mexicans work for Pemex and CFE at all levels. Don't judge all of them by the reported cases of stealing or taking bribes to sign contracts.

https://foreignpolicy.com/2019/10/04/mexico-amlo-lopez-obrador-energy-reform-rollback-pemex/

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I don't judge them as a whole. 

The problem is both systems are corrupt.  CFE employees accept mordida at all levels.

Why does Pemex need it's own hospital system?  Why has production fallen every year in Mexico while in the rest of the world it has increased? 

 Both are mismanaged to the nth degree.   If they were public companies who had to compete you would see vast changes, alas it will not happen in the next 4 1/2 years. 

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1 hour ago, AlanMexicali said:

54 percent of Pemex revenues since incorporation were taken by the Mexican federal government and put into their federal treasury. Only in Peña's term was it dropped to 35 percent after the 2013 tax reform law started working well. So comparing it to any Worldwide privately owned  oil company is apples to oranges.

 

If it weren't for the Pemex "contribution" Mexico would have little or no infrastructure at all levels. Wanna ride in a donkey cart on a dirt road and please don't degenerate this into a political discussion.

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11 minutes ago, happyjillin said:

If it weren't for the Pemex "contribution" Mexico would have little or no infrastructure at all levels. Wanna ride in a donkey cart on a dirt road and please don't degenerate this into a political discussion.

Pleease....Both the US and Canada have the best infrastructure in the world (I would say multiple times that of Mexico) and as far as I know there was no "contribution(s)" from the oil industries except normal taxation. 

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At this time $11US of every barrel of sales by Pemex goes to pay debt. The benchmark price for Maya hit $12.92 last week, its weakest since January 2002, data from S&P Global Platts shows.  Now take out the cost of production.... Petróleos Mexicanos holds one of the lowest production costs worldwide with an average below 10 dollars per barrel in fields that are currently active; moreover in some shallow-water wells the cost is less than $ 7 a barrel.

So Pemex is losing money on every barrel produced. 35% of nothing is nothing. 

After more than a decade of declining production, wasteful spending and a higher tax burden than any other driller in Latin America, it’s little wonder Mexico’s Pemex is the world’s most indebted oil company.

Pemex’s oil output has plunged by almost half since a 2004 peak, and its proven reserves are just a quarter of what they were almost two decades ago. Yet rather than prioritizing oilfield maintenance and new discoveries, the government-owned energy company has spent money on non-core business units and inefficient drilling projects.

Actually the Mexican government subsidizes the price of gasoline and electricity from funds received by income tax, and IVA.   So as to Pemex helping infrastructure in Mexico that ship sailed a long time ago. 

To continue reading this article, you must
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2 minutes ago, gringohombre said:

Pleease....Both the US and Canada have the best infrastructure in the world (I would say multiple times that of Mexico) and as far as I know there was no "contribution(s)" from the oil industries except normal taxation. 

You have a lwot to learn grasshopper, more than I am willing to take on. Mexico tried to work with the U.S. in the 1930's only to be arrogantly dismissed.  So Mexico decided to nationalize its oil industry and has never looked back, until last year, when foreign companies were allowed to bid on possible Mexican owned leases. Many other countries in the world also chose this option, mostly because the U.S. oil industry were, at that time, and maybe still today, were hamfisted bullies who were determined to clean off the tables without a scrap remaining. Canada' s oil industry was nationalised in the 1970' by Justin's father, Pierre Elliot, another "socialist" I guess. Subsequent right leaning governments sold these assets off again - but with more favorable terms and conditions. Just like Mexico is doing now, except the Saudis and Russians decided to crush the market.

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15 minutes ago, CHILLIN said:

You have a lwot to learn grasshopper, more than I am willing to take on. Mexico tried to work with the U.S. in the 1930's only to be arrogantly dismissed.  So Mexico decided to nationalize its oil industry and has never looked back, until last year, when foreign companies were allowed to bid on possible Mexican owned leases. Many other countries in the world also chose this option, mostly because the U.S. oil industry were, at that time, and maybe still today, were hamfisted bullies who were determined to clean off the tables without a scrap remaining. Canada' s oil industry was nationalised in the 1970' by Justin's father, Pierre Elliot, another "socialist" I guess. Subsequent right leaning governments sold these assets off again - but with more favorable terms and conditions. Just like Mexico is doing now, except the Saudis and Russians decided to crush the market.

If the best you can do is go back almost 100 years ago to make your argument, then you are TRULY LOST. My best argument is for you to read the above post by MOSTLY LOST. Also your childish name calling is not becoming at all...get over it and into the REAL WORLD!!!!

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46 minutes ago, Mostlylost said:

 

At this time $11US of every barrel of sales by Pemex goes to pay debt. The benchmark price for Maya hit $12.92 last week, its weakest since January 2002, data from S&P Global Platts shows.  Now take out the cost of production.... Petróleos Mexicanos holds one of the lowest production costs worldwide with an average below 10 dollars per barrel in fields that are currently active; moreover in some shallow-water wells the cost is less than $ 7 a barrel.

So Pemex is losing money on every barrel produced. 35% of nothing is nothing. 

After more than a decade of declining production, wasteful spending and a higher tax burden than any other driller in Latin America, it’s little wonder Mexico’s Pemex is the world’s most indebted oil company.

Pemex’s oil output has plunged by almost half since a 2004 peak, and its proven reserves are just a quarter of what they were almost two decades ago. Yet rather than prioritizing oilfield maintenance and new discoveries, the government-owned energy company has spent money on non-core business units and inefficient drilling projects.

Actually the Mexican government subsidizes the price of gasoline and electricity from funds received by income tax, and IVA.   So as to Pemex helping infrastructure in Mexico that ship sailed a long time ago. 

To continue reading this article, you must

Ok,wrong word,infrastructure. Should have said general revenue which then is doled out to state and muni's for their general revenues. They are a  government corp.  to be used unlike a private company so what they contribute is not a tax.

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19 hours ago, gringohombre said:

Pleease....Both the US and Canada have the best infrastructure in the world (I would say multiple times that of Mexico) and as far as I know there was no "contribution(s)" from the oil industries except normal taxation. 

The US does NOT have the best infrastructure in the world. Bridges are collapsing, highways are in abysmal shape, no running water in many rural areas, no electricity in rural places, and on, and on, and on . . . In parts of the US, it's like a developing nation. Been there, done that!

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World Bank doesn't agree with you.

https://lpi.worldbank.org/international/global?sort=asc&order=Infrastructure

Notice everyone on the list above the U.S. are small densely populated countries that require much less infrastructure per capita.  This index has a primary component of infrastructure quality related to transportation.  You know, like bridges and stuff.

By another measure, bearing in mind it is hard to make direct comparison due to the disparate factors of country size, population, population density, climate and the like:

https://tcdata360.worldbank.org/indicators/h2cf9f9f8?country=USA&indicator=536&viz=line_chart&years=2007,2017

Now as to Pemex:

https://www.naturalgasintel.com/articles/113934-corruption-is-everywhere-within-company-says-former-pemex-chief

This will continue and every Mexican will pay for it via overpriced energy and reduced economic output until this nonsense of the "peoples oil" goes away and the company is subjected to the discipline of the marketplace.

 

 

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3 hours ago, Alli said:

The US does NOT have the best infrastructure in the world. Bridges are collapsing, highways are in abysmal shape, no running water in many rural areas, no electricity in rural places, and on, and on, and on . . . In parts of the US, it's like a developing nation. Been there, done that!

The current head of the US government (shall be unnamed here) has put forth multiple infrastructure plans only to be rejected by both parties because of cost. They STILL have a democracy up there. As MC has pointed out they have one of the best and most modern (you can quibble on the ranking) systems in the world. The reason we are even discussing this is that someone here brought up this subject compared to Mexico. Have you driven in Mexico City or even Guadalajara lately? Even Ajijic or Chapala! How about Pemex pipelines exploding, killing multiple people and destroying neighborhoods...on and on.  Quote: ". . In parts of the US, it's like a developing nation."...Give me a break!!!

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Some expect (and I am one of them) that the US will continue to print worthless paper money (the only thing that give the currency value is the military) until it collapses and a gold standard will take over. The monopoly money will be used to build up the US infrastructure in the meantime. Interesting theory. 

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11 minutes ago, Michael Ray said:

Some expect (and I am one of them) that the US will continue to print worthless paper money (the only thing that give the currency value is the military) until it collapses and a gold standard will take over. The monopoly money will be used to build up the US infrastructure in the meantime. Interesting theory. 

I think they have more to worry about now than the infrastructure. 

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UH, pipelines don't just explode but they do develop leaks. Those where tragedies have occurred have been "tapped" by the cartels for illegal gas contributions. When you "tap" a little too hard, there is a spark and a resulting explosion and fire. So blame the cartels for the tragedies not Pemex.

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1 hour ago, Ferret said:

UH, pipelines don't just explode but they do develop leaks. Those where tragedies have occurred have been "tapped" by the cartels for illegal gas contributions. When you "tap" a little too hard, there is a spark and a resulting explosion and fire. So blame the cartels for the tragedies not Pemex.

Have you been living in a hole somewhere?

https://www.latimes.com/archives/la-xpm-1992-04-23-mn-1280-story.html

And this is just the most egregious...get a grip!!!

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I should get a grip??? How about you quoting an article from 1992? And if you actually read the article, you would know that Pemex has NO underground gas utilities going into homes. The reason? Because Mexico is an earthquake prone country.

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15 minutes ago, Ferret said:

I should get a grip??? How about you quoting an article from 1992? And if you actually read the article, you would know that Pemex has NO underground gas utilities going into homes. The reason? Because Mexico is an earthquake prone country.

Pemex INFRASTRUCTURE...maybe this was a while ago but if you do the research you are want to do (for your own purposes), you will see many more of these, not to this extent but just as devastating to affected families that happen on an ongoing basis. Why are you so intent in defending Pemex?...they are a disaster and getting worse day by day.

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