Thanks, Alan. (I think!)
+ Mexico nationalized its oil industry in 1938 and created state-run monopoly Pemex. Mexico has some of the tightest restrictions on private investment in energy in the world, with stricter rules than Cuba, China and Russia.
+ Mexico’s oil reserves are declining due to years of low investment under seven decades of one-party rule until 2000. Today, Pemex discovers only one new barrel of oil for every two it extracts.
+ A refining shortfall means Mexico imports 40 percent of its gasoline. It also imports some natural gas.
+ Taxes on oil exports fund nearly 40 percent of government spending, but having to hand over more than half its total revenues has held back Pemex’s spending on exploration and new refineries. Two recent tax cuts slightly eased Pemex’s burden.
+ Mexico produces about 3 million barrels of crude per day, down from a peak of 3.4 million bpd in 2004, and exports about 1.5 million bpd, making it the world’s No. 9 oil exporter.
(Reporting by Jason Lange and Catherine Bremer; editing by Carol Bishopric)
I’m not scared. I know congresscritters like Maxine Waters will have the answers to solve these big problems.
Socialism doesn’t work.
The ten years from discovery to delivery everyone seems to be stuck on is not true in all cases. Especially in an offshore operation. As for ANWR, they already know where to drill and the Prudhoe Bay field, that is the start point for the Trans Alaskan Pipe Line, is not that far away. I bet they could do it in far less than 10 years, three or four, especially if it became a priority!
It's run by socialists. Of course it was mis-managed. PJ O'Rourke once said something about the Soviet Union's economy being like a top fuel dragster doing burn outs on your lawn - expending lots of effort, but going absolutely nowhere.
the United States and other oil importing nations are literally at the mercy of governments that do not have to answer to their citizens.
The United States government doesn't answer to its citizens any more, either.
Yes, perfectly true. And when the money from oil revenues really starts to decline, the Mexican government will predictably start taxing and confiscating other foreign investments, because they certainly aren’t going to make those billionaires or drug lords pay any taxes. The economy will spiral into a worse decline, no doubt leading to unrest and revolution. Ugh.
Another salient point is that the US hasn’t been much better than Mexico in developing its oil resources and refineries in the past 16 or 20 years. Our government seems determined to head down the same failed path as Mexico.
Hey, I know- let’s send Mexico 1.4 Billion dollars to fight their drug war. That’ll fix all their problems. /s/
The most disturbing thing about Mexico is that we do not have a clear Mexico policy, at least not one that anybody can understand.
Do we want Mexico as a colony?
Do we want to admit the states of Mexico to the union?
Do we want to occupy Mexico for 50-100 years, and civilize it?
Do we want a nation-sized Gaza strip, simmering behind a wall?
Congress debated Mexico policy incessantly from 1821-1861. If anybody in Congress respected American nationhood and American sovereignty, they'd be debating it again, right now.