President Fox's attempts at reform have been hamstrung by PRI resistance -- and Pemex's history of corruption. Both men deny the charges. Romero Deschamps is battling an attempt in Congress to strip him of the legal immunity he enjoys as a sitting senator. Montemayor fled Mexico last year and is fighting extradition from Houston. The PRI, struggling to defend them -- and itself, is also resisting every effort to transform Pemex. Morgan Chase's Mexico office.
Edward L. Morse, executive adviser at Hess Energy Trading Co. President Fox, he said, does not ''understand how thoroughly ingrained in the national political culture the monopoly of Pemex is. Pemex remains one of the world's few national oil companies with no competition from within or without.
Its resulting inefficiencies are stark. He once ran a company that supplied Pemex with chemicals, and he was often solicited for bribes, he said. Today he sits on a commission on corruption at Pemex, composed of 14 directors. There is brutal inefficiency. For example, Mr. Canales said, he recently asked how much Pemex paid each year for goods and services -- everything for ice packs to helicopters rented to fly engineers to offshore rigs. No one knew.
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