Quantifying Pemex E and P benefits from foreign strategic associations

Journal Article · Mon Mar 01 04:00:00 EST 1993 · Oil and Gas Journal; (United States)

OSTI ID:6452436

Baker, G

The recent critique by the Heritage Foundation of the management of Mexico's petroleum sector deserves attention by oil industry observers of Mexico as well as government and academic analysts. The foundation argues that sweeping changes are needed-for Mexico's own good-in upstream and downstream policy. The following analysis presents one form of quantifying the upstream argument: the Mexican government stands to gain $5.7 billion/year in taxable revenue from state petroleum company Petroleos Mexicanos by 2000 from strategic associations with international petroleum companies. In addition, there are efficiency advantages that Pemex would gain by strategic associations with international petroleum companies. The ripple effects would include not only oil production and tax revenue increases from Pemex operations but also the advantages of new management skills, new sources of funding and technology, and lower operating and overhead costs in Pemex. It will not be possible, however, for the Mexican government to choose one or more strategic partners by quantitative methods alone. To the contrary, a significant measure of trust will be required.

• OSTI ID: 6452436
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 91:9; ISSN OIGJAV; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290201 -- Energy Planning & Policy-- Economics-- (1992-)
294002 -- Energy Planning & Policy-- Petroleum
COOPERATION
COST
DEVELOPING COUNTRIES
ECONOMIC ANALYSIS
ECONOMICS
EFFICIENCY
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INDUSTRY
INTERNATIONAL COOPERATION
LATIN AMERICA
LEASING
MEXICO
NORTH AMERICA
PETROLEUM
PETROLEUM INDUSTRY
PLANNING
PRODUCTION
RESOURCE DEVELOPMENT
TAXES