Mexican Politics: An Oil Problem Down the Road?

As those who read my blog know, I am bullish on oil prices because of the supply demand picture.

Friday's New York Times had an excellent article titled Output Falling in Oil-Rich Mexico, and Politics Gets the Blame (free registration required) about Mexico's state oil monopoly, Pemex.

Elisabeth Malkin, the author, discusses how political forces are starving Pemex and how Pemex is unable to continue to grow. In fact, it might have trouble just keeping pace with Mexico's growing demand. This is an excellent article because it sheds light on the oil supply side of the equation and it sheds light on potential problems that might arise in Mexico in a few years.