Politics Behind CNH & Pemex Standoff

Mexico's Comisión Nacional de Hidrocarburos (CNH) has ordered state-owned oil giant Petróleos Mexicanos (Pemex) to reduce gas flaring at its fields, in a bid to raise state revenues and cut carbon emissions. While the fiscal implications of this development are potentially significant, we are more interested in the political motivations behind the move. As we have previously outlined, the CNH was created in aftermath of the 2008 oil reforms, and was given the role of supervising the technical aspects of Pemex's operations to ensure maximimum fiscal revenues derived from oil and gas production.

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