Important Political Parties have proved their reform. It has over 20 state legislatures. I think that shows leadership. Now with the polls, it really depends, as in many important issues in public policy, what type of questions you ask. If you describe the benefits of reform of this type, the majority of the feel that are in favor of paying lower costs in electricity or gas. If you want to privatize pemex, you have a high response of no. But this reform is not pemex. Its natural gas in mexico and that will decrease the costs of electricity through the process that we have discussed before. So i believe that this reform as it evolves it will show the benefits to the mexican people. We have also been very careful following the instruction of the president not to establish a timeline that its not going to be achievable. We believe that as david describes accurately that its going to take time. And the constitutional reform establishes already a timeline. We are going to follow it. We can migrate from those contracts from those to new contracts. Pending of secondary legislation that shall be put into discussion in the next period. Once Congress Approves legislation, were looking for a oneyear period of time for pemex to get its transition to contracts. We will see up to two years for the first bidding round. As you said around 2016, we might be around that time in 2015, 2016. As many of the specialists that are here with us today know, implementation of such reforms in brazil and colombia took time. Were fully aware of that now. We also believe that there are some fields that will benefit from this type of new contract sooner than others. Shell gas and shell oil in the northern part of the country or Shallow Water or brown fields in pemex will show an increasing production earlier than deep water in the gulf of mexico. So we will see some benefits coming in. We are estimating that our Oil Production will increase from the 2. 5 Million Barrels a day that we have now to around 3 Million Barrels a day to 2018 into 3. 5 by 2025. We believe thats a fair estimate. We also believe that an increasing production of natural gas from the 5,700 cubic feet that we produce today to around 8,000 by the end of this administration in 2018 and 10,400 around 2025, which will allow us to reduce our imports substantially from u. S. And decrease the costs of gas and electricity. We believe that those numbers are there. If you go to numbers of investment, we have seen many of the companies that have made those estimates show that around 10 billion by the end of 2018 of Foreign Direct Investment we believe that thats fair. Thats an increase by 50 of what the Foreign Investment in mexico is today. So that is a huge jump if we achieve that number by 2018. But those are estimates from private sector think tanks. Now on jobs, we believe that we will increase by half a million new jobs by 2018 over 2. 5 million jobs by 2025. So those are the estimates that we have put forward to the mexican people. We believe this is obviously something that we will achieve in the middle range and long range. We dont think we are going to have something immediate. We think in order to get it right, we need to do it one step at a time. Were committed to do it that way. Let me ask you. Outline where we are and where we are going to be. Fill in for us for the civilian like me how do i measure progress along that road . What are the milestones that we should all be looking for that this is going in the right direction, that this is on time, that were and as you do that, who has done this really well and what example should we compare mexico to as a best case scenario. I have four bell weathers that i guess i would watch in the the next six months. The first is legislation. The Mexican Government has already prepared drafts of legislation for implementation. Well see what do these frameworks look like, how predictable will it be. So legislation is the first benchmark. The second is going to be budget. Because if they get a significant Budget Allocation to buy seismic, if we see the agencies are funded to stand up to safety rules or the environmental rules or even the licensing requirements, then were going to see that we can predict, i guess, if the regulators are going to move swiftly. The third is outsourcing. Youre going to need a lot more information about the nature of distribution about whether theres metering at the houses. What do we know about the quality of transmission. That information has to be organized and presented for investors. I would be watching. Is there budget. And fourth would be leadership. Are we going to see shadow leaders of these efforts . President obama brought in mike and this is the guy who is going to fix this. So we should start to see shadow leaders for the environmental effort. Probably if theres maybe a leadership. So i think those are the four bell weathers for me. Brazil did it it right the first time. Then their second reform has taken it back. So i would say the opening to the upstream, norway, brazil have followed that model. I think the u. S. And norway have done it, but algeria did it. Iraq did it. The system of open criteria, you open the envelope and see who wins. The independents of the laters, it it remains to be seen whether they are going to be safety case or performance standards or what kind of regulators they are going to be. Norway is another great example. Colombia has a terrific regulator. Those are other countries that have done this well. And on the fund, i think its pretty much only norway that has done this with the kind of political independence, fiscal independence that mexico has done. I think its worth spending a moments talk about the regulator. Thats the key element right now i think in this. The question a the lot of us have is we have a very small, underfunded commission at this point in time. And in a relatively short period of time, were expectings them to either find the Human Capital or resources in mexico or bring them in from outside. And thats the real danger, i think, here. And david said it very well. Is commission going to be allowed to recruit internationally . Will it have the resources to do it . Is it going to be an attractive enough proposition . If its not a strong regulator, then this will be a real problem for both companies wanting to invest in mexico and for the benefits that will be distributed to the mexican people. What role jorge, can institutions like yours play in cooperating with some of the Technical Assistance . Its not only that, but theres a lot of universities in the United States that have a long relationship with pemex. Were working now with a group in mexico on shale gas development. We were talking about Water Resources along the border and what impact Shale Development could have to Water Resources. So certainly our universities in partnerships which we have with toly technical and the National Science foundation, the resources are there for us on our side of the business, the academic and Research Side of the business to add value to this whole process. And remember, theres a heavy involvement in research and partnerships in the american universities with the private sector. So, yes, theres no question that a u. S. Institution and in corporation with mexican institutions can play a key role in this whole process. May i just comment . This is a very important issue that independents in the world of the regulators. And the constitutional reform has taken notice of this. One of the strong elements of the reform is that in article 28 of the constitution, both regulators have achieved some sort of constitutional status. And they have granted technical atonmy. And they have granted something called object so what does this mean . This means that for the services that they provide, they collect a fee. Up to now, that fee would go to the ministry of finance and into the budget. So they wouldnt be allowed to keep that fee. Now they will be allowed to have it in a trust account. In a trust account up to three years of the yearly budget. So that means that they will have a trust account for almost three years of what their budget is like. So they will have enough resources that will be provided by their own services to be able to do all these type of things. Were evolving from a system that is mostly outregulated by pemex into a system that will be regulated by others. So we are migrating into that. We are fully aware that we have to be very careful into that implementation. In addition to that, there are going to be two new members for each of these regulators that right now five member regulator board. Now there are going to be a sevenmember board. This is due to increasing the workload. They are going to have the personnel, the budget and the aton my to be a fundamental part of new model that we have achieved. All of you have mentioned the word transparency in your remarks, in your comments. And clearly the reform aims to turn a page. How does the Mexican Government now guarantee that transparency . Particularly in light of pemex eventually becoming more independent, but how does pemex improve its independence from the very beginning . What are the steps of transparency, concrete steps that people ought to be looking for . Let me begin with duncan. Its a question for all of you. The first step is to really learn what best practices are out there in the world. The second thing is to take full advantage of the technologies that we have available to us. Enrique gave a nice rundown of how it will work its way through in the payments, et cetera. That information needs to be publicly Available Online and easily accessible. It it shouldnt be hidden behind various different hurdles that you have to get over. And the third thing i would say is that Industry Needs to play a role in making sure that things remain open and lets face it, the industry historically has not been the most transparent industry. Its begun to realize that transparency works in their favor. And fourthly, Civil Society needs to play a very big very bg role in mexico and the government should work with civil soes sirkts working with think tanks, et cetera, to make sure this data is available to the public. I think the role of the industry has changed considerably in the last 20 to 50 years. I think we do welcome transparency and we do welcome, also, Good Governance we have many countries in the world in which we have huge challenges. Theres lots of things we would like to implement thats part of the corporate core, not only the corporation but our shareholders and in some countries is extremely difficult to implement. I think transparency not only from the industry is welcome, but i think transparency in the whole process is welcome. Theres a lot of data, both seismic data. A lot of different data we have to share now. We have consortiums talking about universities, consortiums in which five or six Different Private Companies participate in that consortium and they share knowledge and they share new licenses and new procedures. So transparency is extremely important, but Good Governance within within the country in which we operate is extremely important. I think thats going to be the case in mexico, by the way. I dont have any question having lived there and traveled there for the last five or six years regularly that theres a culture change, that there is a new reengineering not only of people mechanics but a new reengineering of mexican society. By the way, i did not mean that the reform process was easy. I did say that but i didnt mean that. People have to understand the first thing, when i was sent to mexico, believe it or not, my corporation sent me for a threeweek course, even though i have a degree in latin american studies of mexican history. You have to go back to Mexican American war of 1917. People were in veracruz in 1914. Theres history behind the whole culture that comes and ties to march of 1938 that we have to understa understand, the political, historical courage it took for the president to move this reform forward. Even though from a historical, political context the process was difficult and not easy, what i meant to say is from a business point of view, this is the easy part, now comes the implementation so we can get to the targets of 2020. Its remarkable at the constitutional level people have to appreciate these transitory articles have constitutional status, revenue transparency, constitutional transparency, cost reporting transparency and reporting to the National Fund are demanded at the constitutional level. I dont think theres another country in the world that has a constitutional level directive for transparency. Thats pretty impressive. I think smaller attempts that will be important will be looking at what the auction system looks like. Presumably that will be transparent and joining Something Like the disstrackive Industries Transparency initiative will give a platform for Civil Society to participate. Thats been a Popular International movement thats shown good results. Enrique, let me give you the last word before i open up to questions. Theres a full committee of transparency in the company know nat toes administration. What you have said is true. We went to Different Countries to see how Different Oil models work. We learned from those who have transparency elements that work well we have put them in the constitutional so we can have a mandate, a clear mandate to make them enforcementable in the law and the regulatory next steps. Were fully committed. I think most importantly, the mexican people does not satisfy the way transparency has been dealt with, extractive sector in the past and we need to do it better. Thats strong and we hope Civil Society will be highly involved with that the idea of the itis is very important. Were analyzing to do it. I would like to bring our other guests here. Sir, why dont i begin with you because youre closest. Stephen donohue from mcclarity and associates. Thank you very much. Perhaps its on purpose, but theres some ambiguity about the issue of booking reserves. David in the paper says its clear its the attention to allow companies to benefit from the future value of what theyre doing. I havent quite heard you say that. Would you tell us how the government of mexico and sened use this Going Forward . That really is the fundamental issue. For us its what congress has achieved in the constitution we believe is Standard Practice of course. It has to be established that the property of oil and gas is of the mexican nation, but those contracts will also be available to be able to report future benefits, future economic benefits of those contractors for feeling all the legal requests that the companies have in different markets. So we are, according to Standard International practices, thats how we see that transitory article. I would just add, stephen, that the sec ultimately will want to look at the contracts and see if theres an element of risk and is there a security of entitlement. If they see those two in the forms of the contract, then they will make a determination that those reserves are able to be booked by companies. I would say in terms of the political culture from talking to our colleagues here and talking to the oppositional parties and appreciating the threshold for legislation is lower than the threshold for constitutional reform, the entire initiative makes no sense absent the ability of companies to book reserves. I think theres deep knowledge and recognition on the part of the government that if companies cannot book reserves, they will not invest and they wouldnt have gone to all this effort to try to enforce this constitutional change knowing it would take constitutional change without it. Youve got to see the contracts. I think in the legislation, thats the two big bellwethers are going to be how much the definition of the schemes is defined in the legislation and how much visibility there is on the terms. All these companies have their models and they crunch it in. How much is the return on investment. Thats why theyll pick mexico and not kurdistan or some other place. The earlier we see the stability, the more security there will be. My question is around National Content. Thats been a big issue in the hemisphere and the extent to which mexico deals with the National Content issue. Well put it more competitive verses other options or less competitive. In secondary law, we will establish percentages and the areas and the time frame for National Content. What we have learned in other countries is that it is important to one of the outcome ts of our reform of this type is to have a Strong National industry that produces services and participates actively in that transformation of the oil and gas sector and were aiming to that. It will be in the secondary legislation that we will establish that. Were also aware that some of the examples in other countries, if you put such strict rules into National Content, that has slowed down implementation of the reform or that has made them more e pen sive in the process of implementation. Another strong element is that were very interested in establishing Foreign Direct Investment, we were looking for companies that are right now based in the u. S. That will be able to be based in mexico and have important offices and p