PEMEX, CFE Could Transition to Public Enterprises Under Sheinbaum

Claudia Sheinbaum plans to integrate PEMEX and CFE into a new government ministry, as part of López Obrador and MORENA’s energy reform plans. Sheinbaum stated that this integration does not mean the dissolution of PEMEX and CFE. Instead, the goal is to achieve better management. The reform will involve amending the Constitution, replacing "productive" with "public" on the description of both PEMEX and CFE.

The reorganization process is spearheaded by a team including Raquel Buenrostro, the future Minister of Public Service; Ernestina Godoy, the future Legal Advisor to the Presidency; and Carlos Augusto Morales, Sheinbaum's future private secretary. This group is tasked with reducing or eliminating several state delegations and preparing for changes that will coincide with the new budget implementation in January 2025.

Sheinbaum also announced that the new leaders of PEMEX and CFE would be named in the coming weeks. The structural and legal adjustments are set to be presented in September 2024, aiming to optimize public administration and enhance state control over Mexico's key energy companies.

With the 2014 Energy Reform, PEMEX and CFE were designated as "Productive State Enterprises," granting them budgetary autonomy to modernize and manage their resources independently, while remaining public companies. This status allowed them to prepare budget projects autonomously, manage their budgets without requiring approval from the Ministry of Finance and Public Credit (SHCP), and independently determine the allocation for personal services, provided they adhered to a debt ceiling and personnel services cap established by Congress.

Transitioning PEMEX and CFE from productive to public enterprises could impact the companies’ priorities focusing away from efficiency and productivity and prioritizing public service. Efficiency and cost-effectiveness would become secondary concerns as CFE and PEMEX adapt to their new roles as public entities.