Sheinbaum narrows competition for top job at Pemex

By making Lázaro Cárdenas the next chief-of-staff, Mexico's president-elect Claudia Sheinbaum has removed a candidate from the contest to run national oil company Pemex.

Local media had speculated that Cárdenas could replace CEO Octavio Romero Oropeza when Sheinbaum takes office in October.

Cárdenas’ grandfather, also named Lázaro Cárdenas, nationalized the oil industry in 1938 when he was president, a move that has defined Mexican energy policy ever since. 

Had Cárdenas become Pemex CEO, Sheinbaum would have cemented a commitment to the energy nationalism of current President Andrés Manuel López Obrador, who has largely closed the door to private investment.

Not giving Cárdenas the top job at Pemex “is good news in the sense that we need someone really technical for the job,” Miriam Grunstein, founding partner of Brilliant Energy Consulting, told BNamericas.

The decision suggests Sheinbaum will adopt a more pragmatic approach to the energy sector than López Obrador, she said.

Cárdenas is a former deputy, senator and governor and was a close adviser to the current government.

Restoring the fortunes of Pemex will be among the first challenges facing the Sheinbaum administration. The oil company has a debt of more than US$100bn and its output of crude oil is falling.

But Grunstein also said that it is difficult to find strong candidates for the position.

"The oil people are getting older and do not think out of the box and the new people don't have experience, so we are in a real bind," she said.

Sheinbaum has named public finance specialist Luz Elena González as energy minister. 

Deputy finance minister Gabriel Yorio is another possible contender to run Pemex.

Grunstein said the next Pemex CEO should not just be a cost-cutter but a person with the industry knowledge needed to return the company to growth.