Oil   Gas  

Mexico's AMLO takes office blasting energy reform

Andres Manuel Lopez Obrador became Mexico's president today in a shift to the left for Latin America's second-largest economy, pledging to end corruption, restore security and rescue the energy sector from what he called a failed reform.

 the corruption and impunity that have impeded Mexico's rebirth ends," said Lopez Obrador, known as AMLO, during his inaugural speech in the legislative palace in Mexico City today. "Today we start the fourth transformation — a profound and radical change in the political regime."

Dispensing with the usual trappings of the presidency, AMLO arrived at the inauguration in a Volkswagen Jetta driven by a long-term aide, having greeted supporters along the route from his home in the southern part of the city.

In a speech that contained no surprises, AMLO reiterated many of his campaign promises to end corruption — the "principal cause of violence, inequality and insecurity" — bring an end to "the neoliberal economic policy that has been a disaster for Mexico," apply austerity so as not to add to the soaring national debt and create a new national guard comprised of ground and naval forces that would restore security by replacing "the corrupt and inefficient police force."

AMLO singled out the energy sector early in his speech, attacking the 2014 energy reform that dismantled state-owned Pemex's monopoly. "They told us it was going to save us but it has only meant the fall in oil production and the excessive increase in gasoline, diesel, gas and electricity prices," he said.

Repeating a favorite criticism of the reform, AMLO said that just $760mn of foreign investment has so far been committed to oil and gas production, "representing just 1.9pc of the early public investment by Pemex during the same period and just 0.7pc of the promised investment."

Despite his criticism of the reform, AMLO confirmed that his government would "respect the [energy] contracts already signed and ensure that investments will be secure."

AMLO confirmed that his government would increase public investment "to rescue the oil and electricity industries," and, in the only specific projects mentioned, he pledged to build a refinery in Dos Bocas, Tabasco and invest in the maintenance of the six existing refineries.

"The damage caused to our energy sector is so severe that, not only are we an oil producing country that imports the most gasoline in the world, but we now also have to buy crude to supply the six refineries that are barely surviving," he said.

Improvements to the refinery system will, AMLO said, allow Mexico to end gasoline imports and result in lower gasoline prices.

"I am conscious of the great expectations that Mexicans have for me … but I am optimistic that we can confront the great challenges ahead … because I believe in the people," concluded AMLO. "I do not have the right to fail you."

Political leaders from around the world attended the inauguration, including US Vice President Mike Pence and US President Donald Trump's daughter Ivanka Trump, in what AMLO called a "sign of friendship between the two countries."

Venezuelan president Nicolas Maduro was received by legislators with shouts of "dictator."

News No: 2792
Date: 2018/12/02 - 16:59
News Source: Argus Media

Mexico  AMLO  Pemex  Tabasco 


Leave a Comment:


Many Toronto-listed miners don't disclose environmental and social info

A report issued by the Amsterdam-based Responsible Mining Foundation reveals that many Toronto-listed junior and mid-tier mining companies do not properly disclose environmental, social and governance information related to their mine sites in Australia, Burkina Faso, Canada, the Ivory Coast, Liberia, Mali, Mexico, Kyrgyz Republic, and Suriname.

Fresnillo’s 2018 silver output hit record high, to be lower this year

Shares in Mexico-focused precious metals miner Fresnillo (LON:FRES) took a hit Wednesday after the company said it expected a decline in silver output in 2019.

Torex reports record production despite challenging situation

Canada's Torex Gold Resources (TSX:TXG) issued a media report stating that, in 2018, it produced 354,000 ounces of gold at its El Limón Guajes Complex, or ELG, located in southwest Mexico. From January to September, the company produced 246,309 ounces of gold in doré, with 11,322 additional ounces gold in carbon fines. The company also reported selling 348,000 ounces of the yellow metal.

Chile's CNDP recommends no antidumping duty on Mexico's rebar imports

Chile's Anti-Price Distortion Commission (CNDP) said Friday it has decided not to recommend an antidumping duty on imports of rebar from Mexico.

TransCanada halts work on delayed Mexico gas lines

Construction of TransCanada's Tuxpan-Tula and Tula-Villa de Reyes pipelines is officially suspended after years of delays, a TransCanada spokesman told Argus.

US products railed 'round Mexico's mountains

Investors are scrambling to meet Mexico's thirst for refined products by rail, which offers a faster solution than pipelines and coastal terminals that are years from fruition.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners