In Mexico, Rumors Surround the Pemex Explosion

Rumors indicate that an explosive device may have triggered the Jan. 31 explosion in the basement of the headquarters of Petroleos Mexicanos, better known as Pemex, in Mexico City. According to other unconfirmed reports, two other explosive devices were in the building that did not detonate. If these claims are true, they would finally offer clarity on the blast, which left at least 32 people dead and more than 100 injured. The official position of the Mexican government, as stated by Pemex Director General Emilio Lozoya, remains that the explosion appears to have been an accident but that the government is pursuing all lines of investigation. 

Though the exact cause of the explosion is unknown at this point, the event could indicate a range of possible political challenges for the new administration, including criminal intimidation and political infighting. The reform of state-owned Pemex has formed the cornerstone of the administration of newly inaugurated President Enrique Pena Nieto. Mexico's declining oil production and exports have a direct impact on the national budget, which in any given year derives 30 to 40 percent of its revenue from Pemex. Reforms will aim to increase crude oil and natural gas production for both domestic consumption and export. As a result, for anyone looking to send a clear message to the new administration, Pemex is a natural target.