Editing Pemex (section)

== History ==
{{Main|Mexican oil expropriation}}
{{See also|Petroleum industry in Mexico}}
[[Asphalt concrete|Asphalt]] and [[Pitch (resin)|pitch]] had been worked in Mexico since the time of the [[Aztecs]]. Small quantities of [[petroleum|oil]] were first refined into [[kerosene]] around 1876 near [[Tampico]]. By the early 20th century, commercial quantities of oil were being extracted and [[oil refinery|refined]] by subsidiaries of the British [[Pearson PLC|Pearson]] and American [[Edward Doheny|Doheny]] companies and had attracted the attention of the Mexican government who then claimed all mineral rights for the state as part of its [[1917 Constitution of Mexico|Constitution]].

In 1938, President [[Lázaro Cárdenas]] (1934–40) sided with oil workers striking against foreign-owned oil companies for an increase in pay and social services. On March 18, 1938, citing  Article 27 of the [[Constitution of 1917]], President Cárdenas embarked on the state-expropriation of all resources and facilities, nationalizing the United States and [[United Kingdom|Anglo]]–[[Netherlands|Dutch]] operating companies. He is famous in saying in his speech addressing the nation,

<blockquote>''I ask the entire nation to furnish the necessary moral and material support to face the consequences of a decision which we, of our own free will, would neither have sought nor desired.''<ref>Government of, Mexico. "Expropriation." In Mexico's Oil : A Compilation of Official Documents in the Conflict of Economic Order in the Petroleum Industry, with an Introduction Summarizing Its Causes and Consequences. Vol. 3. Mexico City: Government of Mexico, 1940. 877</ref></blockquote>

Pemex was established by Cárdenas's decree of June 7, 1938.<ref>{{cite book |last1=Lord Clagett |first1=Helen |last2=Valderrama |first2=David M. |title=A Revised Guide to the Law & Legal Literature of Mexico |date=1973 |publisher=Library of Congress |isbn=978-0-8444-0047-1 |page=288 |url=https://books.google.com/books?id=qKPfAAAAMAAJ |language=en}}</ref>

He framed expropriation as a necessary national response to the injustice of the operations of foreign companies operating on Mexican soil. Expropriation was not outright confiscation since the Mexican government promised to compensate companies. However, in retaliation, many foreign governments closed their markets to Mexican oil until the Allies demand for petroleum in [[World War II]] caused the boycott to be dropped.<ref>{{Cite web |title=Milestones: 1937–1945 - Office of the Historian |url=https://history.state.gov/milestones/1937-1945/mexican-oil |access-date=2023-05-08 |website=history.state.gov}}</ref> In spite of the early boycott, Pemex developed into one of the largest oil companies in the world.<ref>{{Cite web |title=Mexico - Oil and Gas |url=https://www.trade.gov/country-commercial-guides/mexico-oil-and-gas |access-date=2023-05-08 |website=www.trade.gov |language=en}}</ref>

In an interview on the oil news website in November 2005, a Pemex employee spoke anonymously of the company's inability to grow production, stating that the company and country is at [[Hubbert peak theory|Hubbert's Peak]]. The person interviewed believed export levels could not be recovered once peak had passed, as the size of current fields that have been discovered or are coming online represent a fraction of the size of the oilfields going into terminal decline. Annual production has dropped each year between 2004 and 2007.<ref name="eia.doe.gov">{{cite web |url=http://www.eia.doe.gov/emeu/ipsr/t22.xls |title=U.S. Energy Information Administration (EIA) |access-date=May 24, 2007 |url-status=dead |archive-url=https://web.archive.org/web/20070413002844/http://www.eia.doe.gov/emeu/ipsr/t22.xls |archive-date=April 13, 2007 }}</ref> Furthermore, it has been reported the 2005–2006 daily oil production was down by approximately {{convert|500000|oilbbl/d}} (a large proportion of the country's 4,500,000 barrels) on the previous year. Pemex averaged 3.71 MMBPD in 2006.<ref name="eia.doe.gov"/> Pemex has never produced 4 MMBPD or higher for a yearly average.<ref>{{cite web |url=http://www.eia.doe.gov/pub/international/iealf/tableg2.xls |title=U.S. Energy Information Administration (EIA) |access-date=May 24, 2007 |url-status=dead |archive-url=https://web.archive.org/web/20070402133403/http://www.eia.doe.gov/pub/international/iealf/tableg2.xls |archive-date=April 2, 2007 }}</ref> Pemex was replaced as Latin America's largest company by Petrobras, according to a [[Latin Business Chronicle]] ranking of Latin America's Top 500 companies.{{When|date=May 2021}}

To help capitalize the company, former President [[Vicente Fox]] brought forward the possibility of making shares of Pemex available to Mexican citizens and pension funds, to complement a current project-specific investment setup known as "Proyectos de Inversión Diferida En El Registro del Gasto" (Deferred Investment Projects in the Expenditure Registry).<ref>[http://www.Pemex.com/index.cfm?action=content&sectionID=11&catID=117 Pemex.com | Frequently Asked Questions<!-- Bot generated title -->] {{webarchive|url=https://web.archive.org/web/20080312235008/http://www.pemex.com/index.cfm?action=content&sectionID=11&catID=117 |date=March 12, 2008 }}</ref> The proposal, which intended to alleviate Pemex's tax burden and create a substantial budget increase, met opposition in [[Congress of the Union|Congress]].<ref>{{cite web|url=http://www.businessweek.com/magazine/content/04_50/b3912084_mz058.htm|title=Pemex May Be Turning From Gusher To Black Hole|publisher=Business Week|date=December 13, 2004|url-status=dead|archive-url=https://web.archive.org/web/20120626115658/http://www.businessweek.com/magazine/content/04_50/b3912084_mz058.htm|archive-date=June 26, 2012}}</ref><ref>{{cite news|url=https://query.nytimes.com/gst/fullpage.html?res=9C06E4DA1731F931A35750C0A9609C8B63|title=World Business Briefing – Americas: Mexico: Pemex to Increase Spending|work=The New York Times|date=March 2, 2006}}</ref> President [[Felipe Calderón]] made clear at the beginning of his presidency that he would try his best to open up the sector to private investment. Pemex is Latin America's second-largest company measured by revenues, according to a ranking of the region's 500 largest companies by [[Latin Business Chronicle]], behind Brazilian oil company [[Petrobras]]. In June 2009, Pemex has asked for an extra $1.5 billion state aid to finance oil fields investments, reported Bloomberg.

[[File:Tula Refinery (5).jpg|thumb|PEMEX refinery in [[Tula de Allende]], state of Hidalgo]]

President Calderón called for a change in Mexico's [[Petroleum industry|oil industry]] after output at Pemex fell at the fastest rate since 1942. His comments came after [[Petrobras]] and London-based [[BP]] said they made a "giant" oil find of as much as {{convert|3|Goilbbl}} in the Gulf of Mexico, southeast of Houston. According to Mexican Energy Minister [[Georgina Kessel]], Mexico may seek to emulate Brazilian Oil rules that strengthened Petroleo Brasileiro SA as it considers regulation changes to revive the oil industry.<ref>{{cite news|url=https://www.bloomberg.com/apps/news?pid=20601207&sid=aJ1Vw5HsdTLI | work=Bloomberg | title=Mexico May Emulate Petrobras as It Plans New Oil Laws (Update3) | date=September 4, 2009}}</ref>

In January 2014, Pemex signed a cooperation agreement with the Russian oil company [[Lukoil]] focusing on oil production and field exploration as well as exchange of knowledge in the aforementioned areas, including actions for ecological preservation and environmental protection.<ref>[http://www.pemex.com/prensa/boletines_nacionales/Paginas/2014-008_nacional.aspx#.U5-VAZR5Nac Press bulletin from Pemex] {{webarchive|url=https://web.archive.org/web/20140708003230/http://www.pemex.com/prensa/boletines_nacionales/Paginas/2014-008_nacional.aspx |date=July 8, 2014 }}</ref>

In February 2016, [[Emilio Lozoya Austin]] stepped down as CEO of Pemex and was replaced by [[José Antonio González Anaya]].<ref>{{Cite web|url=http://www.pemex.com/saladeprensa/boletines_nacionales/Paginas/2016-013-nacional.aspx|title=José Antonio González Anaya toma posesión como director general de Pemex|website=www.pemex.com|access-date=March 10, 2016}}</ref>

On November 27, 2017, [[José Antonio González Anaya]] was appointed to be the Secretary of Finance and Public Credit. Carlos Alberto Treviño Medina was appointed CEO, sequentially.

In July 2021, it was announced that PEMEX.UL for liquefied petroleum gas (LPG) distribution was to be created. Even though Pemex is highly indebted, it is still determined to assist the poor that are affected by the rising energy prices.<ref>{{Cite news |last1=Oré |first1=Diego |last2=Martinez |first2=Ana Isabel |last3=Oré |first3=Diego |date=2021-07-07 |title=Mexican president says Pemex to distribute gas to consumers |language=en |work=Reuters |url=https://www.reuters.com/business/energy/mexican-president-says-pemex-distribute-gas-consumers-2021-07-07/ |access-date=2023-06-20}}</ref> n a rare turn of events, Pemex saw profits of $719 million in the second quarter of 2021.<ref>{{Cite web |date=2021-07-28 |title=Pemex Posts Rare Quarterly Profit as Oil Prices Swing Upward |url=https://www.naturalgasintel.com/pemex-posts-rare-quarterly-profit-as-oil-prices-swing-upward/ |access-date=2023-06-20 |website=Natural Gas Intelligence |language=en-US}}</ref> Also in July 2021, the [[SENER]] appointed Pemex as the operator for the [[Zama oil field]] which was originally discovered by [[Talos Energy]] in 2017. The two companies shall work together for the final development of Zama.<ref>{{Cite web |date=2021-07-05 |title=Mexico's Energy Secretariat chooses Pemex to operate Zama oil field |url=https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/070521-mexicos-energy-secretariat-chooses-pemex-to-operate-zama-oil-field |access-date=2023-06-20 |website=www.spglobal.com |language=en}}</ref><ref>{{Cite news |last1=Martinez |first1=Ana Isabel |last2=Barrera |first2=Adriana |date=2021-07-05 |title=Mexico taps Pemex to run major oil find, ramping up energy nationalism |language=en |work=Reuters |url=https://www.reuters.com/business/energy/mexico-chooses-pemex-operate-zama-oilfield-document-sources-2021-07-05/ |access-date=2023-06-20}}</ref> In September that year, Talos disputed the governments decision, since Pemex doesn't have the required $2 billion for the oil fields development.<ref>{{Cite web |date=2021-09-04 |title=Talos pushes back against Pemex over Zama oilfield takeover |url=https://www.worldoil.com/news/2021/9/3/talos-pushes-back-against-pemex-over-zama-oilfield-takeover/ |access-date=2023-06-20 |website=www.worldoil.com |language=en}}</ref>

With debts still at over $100 billion by September 2021, Pemex and the finance ministry of Mexico's relationship was strengthened as the government decided to continue to support the company, but would not change the laws in order to directly reflect their debt.<ref>{{Cite news |date=2021-09-02 |title=Mexico can keep supporting Pemex, will not guarantee debt, finmin says |language=en |work=Reuters |url=https://www.reuters.com/article/mexico-economy-finmin-idUSL1N2Q41K6 |access-date=2023-06-20}}</ref> some speculation was made that the government may use [[International Monetary Fund]] (IMF) money to lighten Pemex's debt.<ref>{{Cite news |last= |date=2021-09-06 |title=Mexican president hints at eyeing IMF funds to pay Pemex debt |language=en |work=Reuters |url=https://www.reuters.com/business/energy/mexican-president-hints-eyeing-imf-funds-pay-pemex-debt-2021-09-06/ |access-date=2023-06-20}}</ref> Budget increases of 17% over 2021 amounts were proposed, with a 14% reduction of its profit-sharing duties, for 2022's exploration and production processes.<ref>{{Cite web |date=2021-09-10 |title=Pemex Eyes Planned Budget Boost for 2022 |url=https://jpt.spe.org/pemex-eyes-planned-budget-boost-for-2022 |access-date=2023-06-20 |website=JPT |language=en}}</ref><ref>{{Cite news |title=AMLO Allots $32 Billion for Pemex to Boost Flagging Oil Output |url=https://www.bloomberg.com/news/articles/2021-09-09/amlo-allots-32-billion-for-pemex-to-boost-flagging-oil-output?leadSource=uverify%20wall#xj4y7vzkg |access-date=2023-06-20 |newspaper=Bloomberg| date=September 9, 2021 }}</ref>

An agreement between Pemex and [[Braskem]] (BRKM5.SA) was reached in September 2021 for a new gas supply agreement and also to build a $400 million ethane terminal to be located in Laguna de Pajaritos, in [[Coatzacoalcos]], [[Veracruz]].<ref>{{Cite news |last= |date=2021-09-28 |title=Braskem reaches ethane supply deal with Pemex, including new terminal |language=en |work=Reuters |url=https://www.reuters.com/business/energy/braskem-reaches-ethane-supply-deal-with-pemex-including-new-terminal-2021-09-28/ |access-date=2023-06-20}}</ref>

In October 2021, Pemex was in debt with a recorded loss of $3.7 billion in profits for the third quarter compared to the previous year.<ref>{{Cite news |last1=Martinez |first1=Ana Isabel |last2=Eschenbacher |first2=Stefanie |last3=Eschenbacher |first3=Stefanie |date=2021-10-29 |title=Mexico's Pemex back in red despite oil production uptick |language=en |work=Reuters |url=https://www.reuters.com/business/energy/mexicos-pemex-reports-3-bln-net-loss-third-quarter-2021-10-28/ |access-date=2023-06-20}}</ref><ref>{{Cite web |date=2021-12-20 |title=Pemex CEO says Mexico's government will take over debt payments |url=https://www.worldoil.com/news/2021/10/28/pemex-ceo-says-mexico-s-government-will-take-over-debt-payments |access-date=2023-06-20 |website=www.worldoil.com |language=en}}</ref> In the last quarter of 2021, production was 4.5% higher than that of the last quarter of 2020. Due to tax payments and the currency being weak against the dollar, Pemex still reported a net loss of $6.05 billion. In order to reduce the debt Pemex is working on a plan to domestically refine its oil and reduce exports by 2023.<ref>{{Cite news |last1=Barrera |first1=Adriana |last2=Martinez |first2=Ana Isabel |date=2022-02-28 |title=Mexico's Pemex posts $6 bln Q4 loss versus year-ago profit |language=en |work=Reuters |url=https://www.reuters.com/business/energy/mexicos-pemex-posts-6-bln-4th-qtr-loss-reversal-year-ago-2022-02-28/ |access-date=2023-06-20}}</ref><ref>{{Cite news |date=2022-02-28 |title=Pemex Reports $6.1 Billion Loss While Crude Output Rises |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-02-28/pemex-increases-production-as-light-crude-extraction-expands |access-date=2023-06-20}}</ref>

February 23, 2023, three major fires broke out at three different Mexico and U.S. operated Pemex facilities.<ref>{{Cite news |last= |date=2023-02-24 |title=Pemex hit by fires at three facilities in one day |language=en |work=Reuters |url=https://www.reuters.com/business/energy/pemex-hit-by-three-fires-different-facilities-one-day-2023-02-24/ |access-date=2023-04-25}}</ref>

In March 2023, Pemex and U.S. based, [[Talos Energy]] submitted to develop an offshore oil field.<ref name=":0">{{Cite web |title=Pemex News |url=https://www.oedigital.com/pemex |access-date=2023-04-19 |website=www.oedigital.com}}</ref><ref name=":1">{{Cite web |last=Espejo |first=Sheky |date=2022-08-05 |title=Talos says working with Pemex to finalize plan for Mexico Zama oil field before FID |url=https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/080522-talos-says-working-with-pemex-to-finalize-plan-for-mexico-zama-oil-field-before-fid |access-date=2023-04-19 |website=www.spglobal.com |language=en}}</ref> The two companies have been partnered since 2022.<ref name=":1" /> The platform that was submitted was for two offshore platforms and 46 wells with oil and gas from Zama would filter into the Pemex-run terminal at [[Dos Bocas, Trujillo Alto, Puerto Rico|Dos Bocas]].<ref name=":0" />

In June 2023, Pemex received bids for the renewal of the Dos Bocas [[Wastewater treatment|wastewater treatment plant]] (PTE) which was originally built in 1970 and is no longer capable of treating the oily waters.<ref>{{Cite web |title=BNamericas - Pemex seeking to revamp Dos Bocas effluent t... |url=https://www.bnamericas.com/en/news/pemex-seeking-to-revamp-dos-bocas-effluent-treatment-plant |access-date=2023-09-22 |website=BNamericas.com |language=en}}</ref>

Pemex's credit rating changed to from stable to negative in July 2023 due to the ongoing debt accumulation. The government assistance from President [[Andrés Manuel López Obrador|Andres Manuel Lopez Obrador]] is said to likely continue until the end of his term in 2024.<ref>{{Cite web |date=2023-07-21 |title=Moody's lowers outlook on indebted Pemex to negative |url=https://finance.yahoo.com/news/1-moodys-lowers-outlook-indebted-230629794.html |access-date=2023-09-22 |website=Yahoo Finance |language=en-US}}</ref> In September 2023, it was announced that Pemex would receive capital allocations from the [[federal government of Mexico]] to assist in paying off over $11 million in accumulated debt.<ref>{{Cite web |last= |first= |date=2023-09-04 |title=Pemex Gets Billions for Debt Repayment in Mexico Draft Budget - BNN Bloomberg |url=https://www.bnnbloomberg.ca/pemex-gets-billions-for-debt-repayment-in-mexico-draft-budget-1.1966960 |access-date=2023-09-22 |website=BNN}}</ref><ref>{{Cite news |last=Clarfelt |first=Harriet |last2=Murray |first2=Christine |date=2023-09-11 |title=Experts say Mexico cash injection is not enough to fix Pemex |work=Financial Times |url=https://www.ft.com/content/70c73d90-60b6-4597-aa0b-a3b8937a8244 |access-date=2023-09-22}}</ref>