Package

Mexican Senate OKs reform of state-owned oil monopoly

The Mexican Senate overwhelmingly approved an energy-reform package yesterday to modernize the state-owned oil monopoly Petroleos Mexicanos, or Pemex, and revive sagging production.

The package, watered down from that proposed by conservative President Felipe Calderon, won backing from all three of Mexico's main political parties in the Senate. Prospects for passage in the lower house of Congress as early as next week appear good.

The reforms have been criticized by analysts who say that they are too limited to do Mexico much good in tapping sorely needed new petroleum deposits. Leftist critics worry that it would open the door to privatizing a state industry seen by many Mexicans as a source of national strength and pride.

(Published by Winston-Salem Journal- October 24, 2008)