Pemex Overhaul Harder as PRI Misses Mexican Congress Majority

Bloomberg, 07/03/2012

Incoming Mexican President Enrique Pena Nieto will struggle to overhaul the state-run oil industry, a project he has called his “signature issue,” after his party won fewer seats in Congress than pre-election polls forecast.

That leaves Pena Nieto dependent on the opposition to overhaul tax and labor laws, and his PRI well short of the two- thirds majority needed for constitutional changes to open up the oil industry to private investment. He must now convince much of the opposition and his own party to back a law that he says is needed to reverse seven years of declining output in the largest supplier of crude to the U.S.

Read more…