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...Mexico Spies Hinder The War on Drugs With the help of up to $450,000 paid each month to government workers, the Beltrán-Leyva drug cartel infiltrated the Mexican attorney general's office and may have paid a spy inside the U.S. embassy to leak Drug Enforcement Administration secrets, Mexican authorities say. The case is the most serious known example of corruption since 1997, when the head of Mexico's antidrug agency was arrested and later convicted of aiding a drug lord. U.S. officials have not confirmed the embassy infiltration, and no staff changes are planned...

Author: /time Magazine | Title: The World | 10/31/2008 | See Source »

...gringos. Banner-bearing lawmakers opposed to the president's proposal camped with sleeping bags on the podium of Congress, shutting down the legislature for weeks, as the arguments went back and forth, for and against giving international oil giants the right to sink deep wells in Mexican territory and waters, long the sacrosanct monopoly of the country's national oil corporation...

Author: /time Magazine | Title: Opening Up Mexico's Oil to Foreigners: A First Step | 10/31/2008 | See Source »

...industry in January. There are no sweeping constitutional changes to allow foreign corporations a share in the deepwater reserves in the Gulf of Mexico, which may hold as much as 50 billion barrels. Nor will the trans-nationals be able to build and run refineries on Mexican soil as Calderon proposed in his bill filed in April. The thrust of the new law approved Tuesday is simply to allow government oil monopoly Pemex to subcontract foreign companies to explore and drill in specific parts of Mexico. Furthermore, crucial clauses allow Pemex to be able pay those companies by performance...

Author: /time Magazine | Title: Opening Up Mexico's Oil to Foreigners: A First Step | 10/31/2008 | See Source »

However, analysts say that for Calderon to be able to touch the sacred cow of Mexican oil at all is a major advance, which could open the door to deeper changes in the following years in Mexico, the third biggest supplier of crude to the United States after Canada and Saudi Arabia. "The law creates a very important framework on which more regulations can be developed," said energy analyst David Shields. "It allows for contracts with foreign companies that can be much more flexible than anything we have seen before...

Author: /time Magazine | Title: Opening Up Mexico's Oil to Foreigners: A First Step | 10/31/2008 | See Source »

Pushing for an oil law was always a tough bet for the conservative Calderon, who has promised a series of reforms to modernize Mexico. When the petroleum industry was expropriated from American and British companies in 1938, it was trumpeted as one of the great gains of the Mexican revolution. "The oil is ours," cheered millions in celebrations across the country alongside promises of riches for all. Seven decades later, leaders used the same slogans to defend a state oil monopoly more closed to foreign investment than even that of Cuba or Venezuela...

Author: /time Magazine | Title: Opening Up Mexico's Oil to Foreigners: A First Step | 10/31/2008 | See Source »

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