Challenges and urgencies: Pemex in the hands of Sheinbaum

Claudia Sheinbaum's government is facing a monumental challenge in receiving a weakened Pemex, with high levels of debt, a low credit rating, and a constantly declining oil production. The state-owned oil company has been a cause for concern in the offices of the Ministry of Finance, where Secretary Rogelio Ramírez de la O has led efforts to try to stabilize the company's financial situation. Over the past years, Pemex has struggled to regain its profitability and productivity, while its debt remained at concerning levels. Despite some attempts to reduce the debt, the results have been marginal, and uncertainty about the company's future persists. Pemex's almost total dependence on the Ministry of Finance has placed additional pressures on public finances. The administration of Andrés Manuel López Obrador inherited a heavy financial burden, with debt that significantly increased during the previous administration. The commitment of the Obrador government to cover debt repayments has limited financing options and left Pemex in a precarious situation. Pemex's credit rating has been downgraded by agencies such as Moody's, reflecting concerns about the company's financial viability. The federal government's dependence on covering its financial obligations has led to a scenario where investment in the company is limited, and its long-term revenue-generating capacity is compromised. The reduction in tax burden granted by the government to Pemex has been insufficient to boost the company's profitability. Although there have been some profits in recent years, the dependence on external financial support and aid has raised doubts about the sustainability of the current model. Experts in public finance and energy have pointed out the need for a direction focused on recovering Pemex's productivity, rather than depending on fiscal aid and budget cuts. The appointment of a CEO with experience in the energy sector emerges as a key measure to breathe new life into the company and explore new business opportunities. The uncertainty in financial markets and the need to refinance Pemex's debt pose additional challenges for Sheinbaum's government. The lack of income due to low crude production and the lower oil prices predicted for the future represent a threat to public finances and the country's economic stability. In this complex scenario, rescuing Pemex emerges as an urgent and crucial task for Mexico's economic success in the coming years. A strategic focus and a long-term vision are needed to ensure the company's viability and sustainable growth, as well as to protect public finances from potential future financial pressures.