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edpell
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What will the government of Mexico do in ten year when the oilfields of Mexico have been largely depleted and there is no (very very little) oil money to fund the Mexican government?
skeptic2 said:I'm not sure 10 years is the proper time frame but it is true that most of the government's revenue comes from oil. Mexico has a crazy law that says that only the surface of the land is yours. Any minerals below the surface belong to the government. My guess is that other than offshore, Mexico has largely been unexplored for oil or minerals.
In addition to declining revenues from depleted oil fields, Mexico has a serious problem with skimming of government funds by politicians, kickbacks and bribes, all of which tend to drive up the cost of government.
edpell said:What will the government of Mexico do in ten year when the oilfields of Mexico have been largely depleted and there is no (very very little) oil money to fund the Mexican government?
The history of Mexico's oil industry dates back to the early 20th century when oil was discovered in the country. In 1938, the Mexican government nationalized the oil industry, creating a state-owned oil company called PEMEX. This allowed Mexico to have control over its own oil resources and use them to benefit the country's economy.
Mexico's oil industry plays a significant role in the country's economy. It is one of the largest sources of revenue for the government, accounting for about one-third of its total income. The industry also provides employment opportunities for thousands of people and contributes to the country's GDP.
One of the main challenges facing Mexico's oil industry is a decline in production. This is due to aging oil fields and a lack of investment in new technology. The industry also faces competition from other countries and struggles with corruption and inefficiency within PEMEX.
The money generated from Mexico's oil industry is used for various purposes, including funding social programs, infrastructure projects, and education. It also helps to support the country's economy and government operations.
Yes, Mexico has been working towards diversifying its economy away from oil. This is because of the volatile nature of the oil market and the decline in production. The government has been implementing policies to promote other industries such as manufacturing, tourism, and agriculture to reduce its reliance on oil revenue.