Oh man. The U.S. is already their outsourced unemployment insurance provider. What will they do, send another 20 million north?
Mexico is running out and we are doing nothing to develop other sources. Real smart country clubbers, real smart, This is why we will have your heads handed to us on a platter this November. Granted the Dem’s aren”t doing anything either, but you are the ones in power.
Awww, poor Mexican government. Too bad, so sad.
how did they lose so many billions of barrels of proven reserves?
what happened to that huge find in the gulf that Mexico was going to do the drilling for?
Just charge us. We’re already paying health, education, and employment for a good percentage of their population. May as well do the rest.
We can always burn caribou in our fireplaces! (sarcasm)
Most government oil companies are hopeless. They make up for it by bidding out concessions to foreign investors, which is to say, foreign oil companies by and large.
The foreign investor pays a huge sum up front for the right to invest a huge sum of money exploring, drilling, developing. They pay a generous split of whatever they make to the host government, get taxed on their half, and at the end of the agreed time period they hand the whole thing over to the host government. The government, then, either operates it themselves or put it back up for bid.
Its a win-win-win for the host government, who gets to make money on the concession without putting anything in themselves, and they are insulated from the corruption in their own government oil company.
The terms of the divorce are written in up front, so the investor can calculate all of that in from the beginning. Even so, some countries will try to change the rules after hundreds of millions have been invested, and if you don’t like it, what are you going to do about it? The oil business isn’t for the faint of heart.
Mexico has the worst of all worlds. They mostly don’t allow foreign investment in their oil industry. So they are completely exposed to the full effects of government inefficiency, waste, politicized planning, corruption, without outside investors to ameliorate the situation. Without private investment, most government oil operations go down, down, down year after year.
Failed states are always defined by economic insanity.
I see a possible solution here. Since the Democrats won’t allow US oil companies to drill for oil here, then the President should encourage Mexican oil companies to drill “right next to here”.
That is, oilfields overlap the territories of both countries, especially in the Gulf. We could probably convince Pemex to go into a deal with a US oil company to drill oil in the Mexican part of the Gulf, which the two companies would split.
The Democrats would curse and swear and spit, but there would be nothing they could do to stop the Mexicans from drilling just over the border. And if it was done in a partnership, not all of the oil would go through Mexico, even though they would get a healthy share.
What’s really killing Pemex production is that it is a criminal enterprise masquerading as a legitimate business. This is amazingly similar to the kleptocracy that claims to be a government in that hell-hole of a country.