Mexico Reverses Energy Privatization, Returns to State Control

Ah, Mexico. Land of ancient pyramids, breathtaking beaches, and now, thanks to an eight-hour Senate session, a fresh constitutional rebranding of its state-owned energy giants. Yes, you heard right—state-owned—because Pemex and the Federal Electricity Commission (CFE) are back under government control, like prodigal sons returning home to a mother who never quite trusted their independent streak in the first place. It’s all part of a grand plan to regain “energy sovereignty,” or as I prefer to call it, an unapologetic middle finger to private enterprise.

In the dark hours of the night, while most of us were dreaming of Ferraris and whisky, 86 wide-awake Mexican senators voted “yes,” while 39 opted for “absolutely not,” and one senator, Amalia García, sat on the fence, probably scrolling through her phone and thinking, "meh, let’s abstain." The whole thing ended just after midnight. Oh, and in case you’re wondering, this wasn’t some routine post-midnight debate about minor administrative tweaks—no, this was a heated standoff, with the future of Mexico’s energy sector at stake. It was a proper political slugfest between the ruling Morena party, waving the banner of “energy sovereignty,” and the opposition, waving the even bigger banner of “you’re ruining everything.”

Let’s set the scene, shall we? Former Mexican President Andrés Manuel López Obrador, often referred to as AMLO because apparently three syllables is all we can handle, championed this reform as part of his “Fourth Transformation” project, which, to my ears, sounds like a knock-off movie sequel. His argument? Mexico needs to regain control of its natural resources—oil, electricity, and even lithium—and they should be state-controlled, thank you very much. No more of this wishy-washy private investment nonsense. No more foreigners coming in and making a profit from Mexico's black gold. No, no. Pemex and the CFE are to be restored to their former glory—big, state-run monopolies, like the good ol' days.

Oscar Cantón Zetina, the head honcho of the Constitutional Points Commission, called the energy reform of 2013 a “historical error,” a bit like someone saying that the invention of electricity was a bad idea because it made candles redundant. His view, shared by the 4T (Fourth Transformation) crew, is that Peña Nieto’s reform opened the floodgates to privatization, allowing greedy corporations to sink their teeth into Mexico’s energy sector, leaving poor Pemex and CFE to fend for themselves. According to Cantón Zetina, this latest reform will reverse that mistake and put Mexico back in charge of its own destiny.

Now, of course, not everyone is so thrilled. The opposition—largely the PRI and PAN parties—seemed genuinely horrified at the prospect of this so-called "counter-reform." They argued it would do everything from violating trade agreements to scaring away private investors to single-handedly increasing global pollution levels. Yes, you read that correctly—Mexico’s switch back to “dirty” energy will apparently doom the planet. Never mind that the U.S. is still burning fossil fuels like it's going out of fashion—according to opposition senators, Mexico switching back to oil is the environmental tipping point.

And let’s not forget the juicy bits about corruption. Senator Judith Díaz of the Green Party, in a delicious moment of drama, reminded everyone about the bribes handed out to legislators during Peña Nieto’s time—120 million pesos, allegedly—to grease the wheels for that reform in 2013. You can almost see the twinkle in her eye as she called out her rivals for defending their "dirty" energy deals, while subtly implying they’ve been lining their pockets with renewable energy dollars. Because nothing says ‘clean energy’ like a good old-fashioned bribe.

But it wasn’t just energy policy on trial in this marathon session. Oh no. The ghost of Genaro García Luna, former Secretary of Public Security, loomed large in the chamber. His recent drug trafficking conviction served as yet another political battering ram, with Morena senators using it to launch attacks on former President Felipe Calderón. “Hey, remember that guy? The one who was tough on crime while his right-hand man was hobnobbing with cartel bosses?” You know it’s serious when someone busts out a banner reading, “Genaro García Luna, drug trafficker; Calderón, his boss.” It’s like high-stakes political theatre, except with a real-life crime boss and the guy who once ran a country.

But back to the energy reform. The crux of the matter lies in a set of constitutional amendments to articles 25, 27, and 28, which will reclassify electricity, hydrocarbons, lithium, and even the Internet as public resources, free from the grubby hands of private enterprise. No more speculating on oil or profiting from electrons. Pemex will drill, the CFE will light up your house, and it’ll all be in the name of the public good. Never mind the fact that Pemex is drowning in debt, or that the CFE hasn’t exactly been the poster child for efficiency. No, no, those are mere details.

To hear Morena senators like Enrique Inzunza tell it, this reform isn’t just about energy—it’s about the soul of the country. It’s about ensuring that Mexico's energy resources fuel a “constitutional welfare state.” There’s that phrase again: welfare state. It sounds noble, doesn’t it? Never mind that opposition senators like Pablo Angulo Briceño warned that consumers could end up paying more for less reliable service, or that job opportunities in the energy sector might evaporate faster than the oil Pemex drills. No, no. It’s all for the people. The poor, the downtrodden, the energy-less.

The final hurdle, of course, is getting the reform through at least 17 state legislatures before President Claudia Sheinbaum—yes, you read that correctly—signs it into law. And when that happens, Pemex and CFE will once again become the flagships of Mexico’s energy sector, standing tall and proud. Or, as the opposition would say, stumbling along under the weight of their own inefficiencies, debts, and a crippling lack of private investment.

But let’s face it—this is Mexico. A land of contradictions, beauty, and complexity, where energy reform isn’t just about keeping the lights on. It’s about power in every sense of the word. So buckle up. This ride is far from over.