The Mexican government has just opened its state-owned oil and energy industry to private companies.
Contracts and production licenses will be offered in public bids and will go to companies that offer the best return.
Mexico nationalized the oil industry in 1938, which made the people of Mexico part-owners, but in recent years it has struggled with declining oil production and a lack of funds for new exploration. President Enrique Pena Nieto’s constitutional reform passed last year allowing privatization to begin. Companies will pay royalties and taxes to the Mexican government for the right to explore and drill.
PeMex, the national oil company, would get first consideration for licenses.
But as Political Analyst Laura Carlsen tells Americas Now, the reform is still the topic of much controversy in Mexico. She joins anchor Elaine Reyes to discuss the implications and reactions of the new oil regulations.