Necessary Roughness

Mexico’s President Felipe Calderon is pondering allowing foreign investment and know-how to develop the state-owned petroleum reserves, reports (link dead) the Houston Chronicle.

The world is moving towards flat taxes and privatized economies just as the U.S. stands poised to out-socialize the Old World.

Pemex — which exports about 1.4 million barrels of crude a day to the United States, most of it through Houston and its environs — has acknowledged that its oil production and reserves are dropping fast.

Many across the political spectrum here agree something must be done, and quickly, to reverse the tide, but the showdown isn’t expected to come for several months. The argument involves whether to invite in American and other foreign oil companies, which have the advanced technology and resources to find more petroleum, and on what terms to do so.

Risk and reward, muchachos. This is exciting stuff. If you can assure companies that you’re not going to pull a Hugo Chavez on them and seize assets, it will be a win-win-win, Mexico-US private company-US gasoline buyer style.