joether
Posts: 5195
Joined: 7/24/2005
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quote:
ORIGINAL: MrRodgers
I don't think much. If their oil goes from corrupt govt. run oligarchy to corrupt capitalists run private ownership, it won't change the life of the Mexican oil (gas) consumer.
Here
Once various US oil companies get involved either private or even if they dare go public...won't change much. The insiders will gobble up large chunks of stock before the average middle class Mexican gets to it...even if they can afford it.
If westerners do get involved and there is an IPO there could be riots as in China when communists were able to get into the market while the general public was held out.
What say you ?
Lets just say for the sake of the argument those pushing in this direction have the will of their people in mind.
Keeping the oil under strict government control does off set a health chunk of expenditures (social services, military, education, etc.), but using limited technologies and reach of product limited to the country itself. Were as allowing foreign oil companies to tap in could generate a larger revenue stream, using more up to date technology and exporting to other markets (i.e. the USA) for additional revenues. This could in turn enable the country to handle other expenditures and lower the chances of taxes or fees on its people. Or used to lower or eliminate debt. Such a decision is not really simple or without recognizing the dangers involved.
While there is corruption at some level and depth in every government, its hard to say just how much of the government were as the oil is concern is corrupted. The perception is the some/most/whole of the Mexican government is corrupted to the core. That could be a reality or mere a perception based on people's negative views on either Mexico or the concept of government (or both). Obviously some people stand to gain handsomely if things go in one direction or another. The question is whether those people have their country to heart or their greedy self-interest trumping 'the people'.
This could go in many different directions. I myself would take a conservative financial position if things went towards a private ownership on some or all levels of production and distribution. Its way to early to make reasonable assumptions on future results.
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Mexican oil...will it make a difference ? - 
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