Mexico's price controls

The Mexican government has left an important question open in its historic effort to transform the state-centered oil and gas business. It sets oil and gas prices and has said nothing about stopping the practice. A continuation of price administration would compromise the liberalization President Enrique Pena Nieto seeks for oil, gas, and electricity. But leaving the issue in suspense might be wise. Resource nationalism shows no sign of weakening in Mexico, where it has driven politics since nationalization of the oil industry in 1938. Yet the government recognizes Mexico is missing the opportunity to develop rich oil and gas potential in deep water and in unconventional reservoirs onshor...

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