Abstract
Some articles of the Mexican Constitution related to the energy sector regulation were changed in December, 2013. The aim of those changes was to enhance the private sector role in oil and electricity production. The main Federal Government arguments to support the Constitutional modifications was the lack of internal financial resources to invest, high inherent risks in the exploration and production activities, and the lack of technology to explore deep water oilfields. This essay pretends to analyze the financial and fiscal situation of Pemex. It also compares some of the most relevant financial results with other oil companies around the world, in order to determine if the energy related changes, approved by the Congress, were really needed. The amendment proposed by the President as well as those presented by the pan and prd parties, are also described. The conclusion is that what Pemex really needed was a fiscal reform which allowed it to finance its own investment decisions, due to the fact that its profitability (before taxes) is one of the highest among the studied oil companies.
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