Mexico tries again to attract private oil investment

Mexico’s hitting some dry holes in the marketplace as it moves to privatize its energy sector after decades of government monopoly.

Its first effort to attract private investors, an offshore lease auction in July, was a bust.  Mexican regulators have changed the rules a little for the next auction Sept. 30, and are offering more attractive leases, in offshore regions where oil has been discovered previously.

But some interested parties say true reform will require more fundamental change — creating conditions for a vibrant oil market and economy, rather than viewing oil as a cash cow to fund the government.

Robert Grattan’s update on the Mexican energy overhaul is on