Page 7 - NorthAmOil Week 48 2021

NorthAmOil COMMENTARY NorthAmOil

Republican lawmakers
have raised concerns
over the energy policies
of Mexican President
Andres Manuel Lopez
Obrador.

new. The US lawmaker has been opposed to the Abbott said in his own letter to Biden that he
deal ever since it was announced in May 2021. In was alarmed by reports that the Mexican gov-
June, he sent a letter to the US Treasury Depart- ernment had used members of the national
ment and the Department of Energy (DoE) urg- guard to shut down a fuel storage terminal in
ing a review of the proposed sale. Tuxpan owned by Monterra Energy, a privately
He also delivered a similar critique of the owned US firm, following the latter’s alleged
Mexican NOC’s capabilities. “Simply put, failure to produce required documentation dur-
Pemex does not have the executive, manage- ing the course of an audit. In the letter, Abbott
rial or technical expertise to operate this state- urged the president to “take action to protect
of-the-art facility safely,” he wrote in the letter. American assets from seizure by the Mexican
“This proposed sale greatly increases the risks government.”
of an industrial accident, serious local environ-
mental degradation and damage to our local Potential for nepotism
economy thanks to poor corporate manage- Then on November 22, George Baker, the pub-
ment. Unfortunately, Pemex has a problematic lisher of the Mexico Energy Intelligence, wrote in
track record when dealing with US businesses an article for the Houston Chronicle that he had
and has a history of backing out of contracts, reservations about the deal for many reasons.
soliciting bribes and playing dirty in corporate He cited many of the same issues mentioned by These critiques
disputes.” Babin, Abbott and other Republican figures, but
However, Babin is not the only Republican he also pointed out the potential for nepotism are not likely to
politician to have expressed concern about and corruption. drive CFIUS’ final
Mexican energy policy recently. On Novem- “AMLO has a record of hands-on involve-
ber 3, for example, 40 US lawmakers said in a ment in executive appointments and pro- decision.
letter to President Joe Biden that they believed curement,” he commented, referring to Lopez
that the Lopez Obrador administration’s efforts Obrador by his nickname. “Marcos Herrería,
to ensure Pemex’s advantage over any and all the number two executive in Pemex, is an in-law
competitors violated the terms of the US-Mex- of the president. It would be naïve to suppose
ico-Canada Agreement (USMCA) on trade, that AMLO would not appoint his people to
which was signed in 2020. jobs in Deer Park and replace local contractors
“The overwhelming list of discriminatory with his favourites.”
actions [against US firms] has long passed the These critiques are not likely to drive CFIUS’
point of ‘merely’ raising serious questions,” they final decision, given that most of them are
said. “They actually suggest that the Mexican coming from members of a political party that
government is proactively attempting to enact does not currently hold the presidency. Never-
policies and take actions that violate and under- theless, they may very well cause the approval
mine the treaty. Recent reports of discrimina- process to take more time than previously
tory actions against US companies require a anticipated. As such, Shell may not be able to
timely and clear response.” finalise the sale of Deer Park to Pemex by the
Then on November 17, Texas Governor Greg end of this year.™

Week 48 02•December•2021 www. NEWSBASE .com P7