I hate morning fuel runs

"Spanfeller is a twat" (theaspiringengineer) 09/12/2019 at 07:20 • Filed to: None

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Sovereignty means different things to different people, you know. To me, sovereignty would involve letting Pemex die like the state owned dinosaur it is, and start focusing on improving  education and welfare services that are crumbling. 

MrSnrub > Spanfeller is a twat 09/12/2019 at 17:22

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How would privatizing the state-owned oil company help improve education and welfare? Wouldn’t it drastically reduce the state’s revenue, making it more difficult to fund social services?

Spanfeller is a twat > MrSnrub 09/12/2019 at 18:12

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For many reasons that aren’t immediately evident. Pemex is insolvent, Mexican oil is very difficult and expensive to refine, and the long term investments it requires won’t necessarily pay out as oil is on its way out (im talking 30 year investments). It makes more sense to continue the oil auctions and invest in renewables.

If Pemex wasn’t in such bad conditions saving it would be more plausible. But the truth is that we cannot compete effectively at such a low price per barrel without significant investments that won’t necessarily pay out. It basically needs to become a new company

Investing in other technologies would possibly give Mexico a competitive edge in the new age of energy.

MrSnrub > Spanfeller is a twat 09/12/2019 at 21:03

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Fair enough, and I don’t really know that much about the situation. I assumed they were in better financial shape. I do recall oil production in Mexico peaked a while ago, and at some point you just can’t overcome geology.

Spanfeller is a twat > MrSnrub 09/12/2019 at 22:23

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The Treasury just announced a five billion dollar cash injection into Pemex, and it’s just the tip of the iceberg.... It has a debt of over 100 billion dollars. Keep in mind that our yearly budget is around half a trillion dollars and it has a sizeable deficit  . That 1% of cash had to come from somewhere.