WATCHING THE WORLD: Mexico’s oil critics

May 5, 2008
Mexico has agreed to talks with a rebel group that last year claimed responsibility for a series of attacks on oil and gas installations that severely dented the country’s economy.

Mexico has agreed to talks with a rebel group that last year claimed responsibility for a series of attacks on oil and gas installations that severely dented the country’s economy (OGJ Online, Sept. 21, 2007).

The Ejercito Popular Revolucionario bombed the Cactus-San Fernando natural pipeline to force the release of fellow militants it alleges were arrested by the government on May 25, 2007. Back then, Mexican officials said the rebels were not in custody.

The Mexican government still claims to have no idea about them. But the Interior Ministry at least promised to keep investigating the disappearance of the two men, identified as Edmundo Reyes Amaya and Gabriel Alberto Cruz Sanchez.

Mexico has good reason to be cooperative with the militants. Although state oil firm Petroleos Mexicanos said the attacks did not result in any casualties, some 2,000 businesses in 10 states went without power at a cost of about $100 million/day.

Fewer enemies better

However the talks go, having fewer enemies will definitely be in the interests of the state oil company. Why, just last week, a group of armed robbers stole about $480,000 from Pemex headquarters.

Pemex said seven assailants entered its administrative offices, where they attacked security officers guarding an armored truck. One of the two guards was beaten, but there were no bullet wounds. Pemex said the robbers escaped with their loot in a green Ford Escort.

Even as the Mexican police went in hot pursuit of the getaway car, Pemex was in the throes of fending off an attack of a much different kind. This time, the attack was launched by thousands of demonstrators who marched in Mexico City to protest a government bill to partly privatize Pemex.

The reform looks to bolster Mexico’s oil industry by offering incentive-based oil service contracts and opening the refining industry to private capital.

‘Constitution violated’

Organized by the so-called Oil Defense Movement, the demonstration was headed by former Mexico City mayor and presidential candidate Andres Manuel Lopez Obrador, who said President Felipe Calderon’s plan “violated the spirit and letter” of the constitution.

Obrador, who lost to Calderon in contested elections in 2006, said the president “intends to turn over to private and foreign individuals the exploration, drilling, refining...pipelines and storage of (Mexico’s) oil.”

The public protest came after lawmakers of Obrador’s Broad Progressive Front took over both houses of Congress on Apr. 10 to stop the government from submitting its oil bill to a vote without debate.

Having achieved his aim in Congress, Obrador said the demonstration kicked off “the second phase of the civil resistance.”

Wisely enough, in an effort to head off anything like a popular protest, Mexico’s Senate energy committee has agreed to a series of national debates on the proposed energy reforms to be held May 12-July 22.

Still, it could be a very hot summer in Mexico.