Mexico is poised to allow foreign investment in its state-owned oil company, Pemex, for the first time in 75 years. In Venezuela, home to the world's cheapest gasoline, prices are due to skyrocket if President Maduro ends subsidies as he's indicated.
Mexico and Venezuela are the West's two major oil producers whose oil companies are state-owned, or "owned by the people", as their supporters describe it. Both are experiencing declining production. Change, though of different types, appears to be coming to both nations that may increase oil production and boost federal revenues.
As we posted here in August, Mexico, 'the world's ninth largest oil producer and first to nationalize its oil production, has seen steep production declines as the state-owned oil company lacks (the necessary) capital resources and expertise" to invest in oil production. With "legislation passed by Congress on 13 December and ratified by a majority of Mexican states" and signed by President Enrique Pena Nieto on Dec. 20, the tide may be reversed, as the BBC News indicates.
"This is the beginning of a new history for our country. We have opened the doors for a better future for all," said Mr Pena Nieto.
The historic legislation amends the constitution to "allow foreign investment in oil, gas and electricity," i.e. the energy market has been opened. Christian A. DeHaemer, in his piece in Energy & Capital, "Mexico Oil: Full Gusher" predicts that "(f)racking, the same technology that is quickly turning the United States into the world's biggest producer of oil and natural gas, will soon transform Mexico as well."
However, one last potential hurdle to the influx of foreign capital may be a referendum submitted by the Party of the Democratic Revolution, or PRD, that opposes the change which they characterize as privatization, writes Juan Montez of the Wall Street Journal.
And in Venezuela, the world's thirteenth largest oil producer, President Nicolas Maduro indicates he will reduce, if not eliminate, the government's substantial subsidy of oil prices that keeps gasoline prices at a nickel a gallon, though it's obtained on the black market for a penny a gallon, write the staff of The Truth About Cars (TTAC). We posted here in March that under Maduro's predecessor, Hugo Chávez, "[e]nergy experts say his gasoline subsidies doubled domestic consumption, cutting deeply into exports in addition to "draining the budget of $1.5 billion annually."
While the article's title suggests gas prices could rise to $1.60 gallon, they write that "it’s unknown how much Maduro will raise the price." In an AP article, "Venezuela car owners unfazed by planned fuel hike", the reporters suggest that as long as the amount of the increase isn't publicized, the people are not worrying.
Gas prices in Venezuela have been unchanged for 20 years, as has been the federal gas tax in the U.S. While subsidizing gas prices is different than subsidizing transportation expenditures because of insufficient gas tax revenue ($41 billion since 2008, and $14 billion in 2015, as noted here), there are analogies to consider. For example, both subsidies drain federal budgets and keep gas prices artificially low, which increases driving.
FULL STORY: Mexican president signs controversial oil and gas law
Depopulation Patterns Get Weird
A recent ranking of “declining” cities heavily features some of the most expensive cities in the country — including New York City and a half-dozen in the San Francisco Bay Area.
California Exodus: Population Drops Below 39 Million
Never mind the 40 million that demographers predicted the Golden State would reach by 2018. The state's population dipped below 39 million to 38.965 million last July, according to Census data released in March, the lowest since 2015.
Chicago to Turn High-Rise Offices into Housing
Four commercial buildings in the Chicago Loop have been approved for redevelopment into housing in a bid to revitalize the city’s downtown post-pandemic.
How California Transit Agencies are Addressing Rider Harassment
Safety and harassment are commonly cited reasons passengers, particularly women and girls, avoid public transit.
Significant Investments Needed to Protect LA County Residents From Climate Hazards
A new study estimates that LA County must invest billions of dollars before 2040 to protect residents from extreme heat, increasing precipitation, worsening wildfires, rising sea levels, and climate-induced public health threats.
Federal Rule Raises Cost for Oil and Gas Extraction on Public Lands
An update to federal regulations raises minimum bonding to limit orphaned wells and ensure cleanup costs are covered — but it still may not be enough to mitigate the damages caused by oil and gas drilling.
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Universal City TX
ULI Northwest Arkansas
City of Laramie, Wyoming
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.