President Calderón Congratulates Legislators that Endorsed PEMEX Reform: this is a historic achievement, he declares.
Tuesday, October 28, 2008

Message to the Nation from President Felipe Calderón

Mexicans:
In April I submitted a bill to the Senate to reinforce Petróleos Mexicanos.
Since then, the legislators have engaged in an intense process of analysis and debate that enabled them to improve and enrich this proposal.
This process has culminated today with the passage of this reform by the Chamber of Deputies, after it was initially approved by the Senate.
I would like to thank the legislators who have supported this important reform for the country.
I would obviously like to thank the legislators of the National Action Party, who have always given me their support. I would also like to thank the senators and deputies of the Institutional Revolutionary Party, who have also been promoting wide-ranging reforms, as well as the legislators of the Democratic Revolution Party, who have taken a major step towards engaging in dialogue and submitting proposals.
I would like to thank the Green Party Legislators, who also added a renewable energy initiative, and the legislators in the parliamentary factions of the Social Democratic Party, the New Alliance Party and the Convergence Party, who voted for this reform.
Thanks to the patriotism, vision and foresight of our legislators, Mexico has secured a historic achievement, since this is the most important reform in this area since 1938, when the petroleum industry was nationalized.
Today, I would like to share some of the advantages of this reform with you.
First. As I suggested to Congress in April, Petróleos Mexicanos will not be privatized. Petroleum is the emblem of national sovereignty and has been vital to Mexico's development.
What we have been seeking since the outset, when I submitted the bill, is to strengthen PEMEX as a public firm which is and will continue to be owned solely by Mexicans.
This is how it was approved by the legislators, with full respect for the Constitution and the demands of the people of Mexico.
The Reform guarantees that Mexicans will continue being the sole owners of our petroleum.
Second. The reform will enable Petróleos Mexicanos to boost its oil and gas exploration and drilling capacity.
Now PEMEX will have a greater capacity to extract these hydrocarbons which our country has, particularly in inaccessible areas such as the Chicontepec Basin, the transborder deposits and the deep waters of the Gulf of Mexico.
This would enable us to expand our hydrocarbon reserves as well as our oil and gas production, for the benefit of the country and all Mexicans.
As a result of the Reform, progress has also been made in crucial areas for PEMEX: The firm will now be able to have access to more resources, and to surpluses from its own income, which in turn will enable it to hire more advanced technology and use it to explore new deposits and oil fields.
It will also be sufficiently autonomous to be able to decide which projects it wishes to invest in and will have a more flexible, more efficient hiring system, like that of the world's main oil companies and thereby increase its operating capacity and undertake the large-scale works PEMEX requires.
The boost the reform will give our oil industry will also enable us to reactivate our economy. The large-scale works PEMEX will undertake and the increase in oil production the reform will entail will significantly increase job creation, particularly now that Mexico requires more opportunities than ever before for its youth.
The reform will also strengthen PEMEX’s system of purchases from industry and national firms, thereby encouraging the creation of more sources of work through Mexican supply firms.
For the first time in nearly 30 years, we will build a new refinery with an initial investment of $12 billion pesos the first year; this will produce thousands of direct and indirect jobs, thereby strengthening the national economy.
Once Mexico recovers its rightful position in the world as a major oil producer, we will be able to trigger the country’s growth and development.
A stronger PEMEX will enable us to expand Mexico's oil wealth. This will give us more resources to be able to build more schools, clinics and hospitals, more roads, highways and bridges, more potable water networks and drainage, more electricity, housing and social programs to fight poverty, so that you and your family can live better.
This reform will enable us to make better use of our main source of wealth, namely oil.
The reform will benefit the national economy and all Mexicans.
Third. The reform will make PEMEX more transparent and accountable to Mexicans. The legislators supported and improved government's proposal, in order to establish new instruments that will radically transform the way PEMEX administers its resources and is accountable to the people.
The firm’s management will incorporate independent professional advisors, who will be responsible for ensuring PEMEX's performance, so that it works effectively, efficiently and transparently.
This will also provide more effective mechanisms for fighting corruption.
Congress also approved the President’s Bill to create Citizens’ Bonds through which, for the first time ever, Mexicans will be able to invest in PEMEX, save with PEMEX and directly receive some of the firm's profits.
Any citizen will also be able to gain access on information on how PEMEX’s resources are spent and what they are spent on.
Fourth. The world is changing and we need to access new sources of energy that will also enable us to protect the environment.
The legislators passed two important laws: The Law for Using Renewable Energies and the Law for Sustainable Energy Use.
These will promote the generation of energy on the basis of sources that do not pollute, such as water, wind and sun, and allow us to save fuel, whereby we will take care of our natural resources for the benefit of tomorrow's generations.

Friends:
This reform will benefit us all.
Mexicans will benefit and so will Mexico.
Because in a context of great political plurality and the diversity of ideas and proposals on an issue that is as important and sensitive for all Mexicans as oil, we have been able to reach agreements and a consensus for everyone's benefit.
And it is particularly important that Mexicans have been able to reach an agreement at a time when the world economy is experiencing adverse conditions. Because as a result of the Reform to Strengthen PEMEX and the measures Federal Government has proposed in the Program to Promote Growth and Employment, we are going to strengthen our economy and maintain growth and employment for the benefit of Mexican families.
Thus, step by step, we are coping with adversity and prioritizing our similarities over our differences. As Mexicans, we will have to continue promoting the changes our country needs in order to grow, by demonstrating our responsibility and commitment to the Mexicans of tomorrow.
By working together, Mexicans will be able to overcome any challenge and create the fairer, safer, freer and more democratic Mexico we all long for.
A Mexico in which we will all be able to live better.
Thank you for your attention.

Source: Presidency of Mexico