Author Topic: PEMEX: Mexico’s State Oil Company On The Verge Of Bankruptcy & Collapse  (Read 993 times)

0 Members and 1 Guest are viewing this topic.

Offline HAPPY2BME

  • Hero Member
  • *****
  • Posts: 5617
  • Reputation: +100/-231
  • For The People And By The People
Posted by SRSrocco in Energy, News on March 21, 2017

The result is… Pemex is technically bankrupt.  Now, I am not the only one saying this.  There have been several articles written about horrible financial situation at Pemex.  According to the following article, Mexico’s Largest Company Is Broke:

    March 3, 2016:

    Mexico’s largest company is broke. The country’s state oil company, Pemex, which is one of the federal government’s main sources of revenue, is losing money and is one of the world’s most indebted oil firms.

    The company’s production has dropped for 11 straight years now, while gross income plummeted more than 80 percent last year.



As oil prices and production declined, Pemex lost $30.3 billion in 2015 and $14.3 billion in 2016.  The reason Pemex cut its losses in 2016, even as oil prices fell lower, was due to hefty budget cuts and the layoff of thousands of workers.  According to the article, Pemex Will Layoff 50,000 Employees

Another interesting negative side effect of lower oil prices on Mexico’s economy, is the falling value of its currency, the Peso.  This chart shows value of the Mexican Peso to the U.S. Dollar over the past 20 years:



The Mexican Peso-U.S. Dollar is shown in orange, while the Brent Crude oil price is in black.  As we can see the largest drop in the Mexican Peso’s value took place when the Brent Crude oil price declined significantly.  Since the Brent Crude price fell below $100 in August 2014, the value of the Mexican Peso’s has fallen 32% versus the U.S. Dollar.

https://srsroccoreport.com/pemex-mexicos-state-oil-company-on-the-verge-of-bankruptcy-collapse/