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New Cartel Threat: U.S. Energy Supply
IBD Editorials ^ | September 8, 2010 | Investors Business Daily staff

Posted on 09/08/2010 6:31:29 PM PDT by Kaslin

Energy: Mexico's state oil firm, our second-largest foreign supplier, is under attack from drug cartels. But that's not stopping the U.S. from investing more in its operations while American rigs lie idle in the Gulf.

The volatile Middle East is often seen as the nexus of risk to U.S. energy supplies. But the biggest threat may be next door, in Mexico. It's bad enough that oil production there is declining due to underinvestment. But now the state oil monopoly, Pemex, is encountering a threat no one foresaw a few years ago: attacks from the country's notorious criminal cartels.

The Los Angeles Times this week reported that the violent "Los Zetas" cartel has "crippled" production in the Burgos basin in Tamaulipas state, home of Mexico's biggest natural gas fields.

Thirty oil workers and contractors have been kidnapped, including five who were snatched in May and haven't been heard from since. The cartels force workers to collaborate with them to steal energy, which is then sold for cash.

The gunmen also shake information out of workers on security systems and the delicate workings of gas transport so they can hijack production. Natural gas, with its visible pipelines, is particularly vulnerable, but the cartels have begun moving on oil too.

Pemex won't send its inspectors to some of the areas where the cartels have gotten a foothold, and the Times reported the company doesn't want to talk about it.

These acts, from the same people who smuggle drugs and illegal immigrants into the U.S., amount to an attack on the Mexican state. One-third of the national budget comes from energy earnings. A cartel controlling Mexico's substitute for tax revenue effectively can take over the government.

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Editorial; Foreign Affairs; Mexico
KEYWORDS: aliens; amnesty; democrat; democrats; downmexicodrain; drugscartels; energy; impeachobama; mexico; obama; oil
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1 posted on 09/08/2010 6:31:30 PM PDT by Kaslin
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To: Kaslin

No doubt Soros wants it that way.


2 posted on 09/08/2010 6:33:47 PM PDT by rbg81 (When you see Obama, shout: "DO YOUR JOB!!")
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To: Kaslin

Our troops will be in Mexico within a decade.


3 posted on 09/08/2010 6:34:15 PM PDT by omega4179 (**christine2010.com)
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To: Kaslin
It's bad enough that oil production there is declining due to underinvestment.

I guess this tells us a lot about Mexican 'management' of their oil resource and income. As high as crude prices have been for several years, and as high as oil company profits have been, one might wonder just what is being done with Mexican oil revenues and profit if they must have outside investment to continue production.

Sounds like just another US bailout of Mexico.

4 posted on 09/08/2010 6:40:26 PM PDT by Will88
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To: Kaslin

Its hard to steal natural gas.


5 posted on 09/08/2010 6:43:06 PM PDT by Ben Ficklin
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To: Will88

Let me see...let the cartels steal the oil revenues and profits, or fund a military handsomely to fight them. I might want to become a mercenary if the price is right.


6 posted on 09/08/2010 6:46:13 PM PDT by JimmyMc
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To: Kaslin
Pemex won't send its inspectors to some of the areas where the cartels have gotten a foothold,

No problemo, once they control some or all the oil operations, they can just kidnap people and force them to run things for them.

7 posted on 09/08/2010 6:47:50 PM PDT by umgud (Obama is a failed experiment.)
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To: Kaslin
a threat no one foresaw a few years ago: attacks from the country's notorious criminal cartels

Uh, lots of us have been predicting the takeover of Mexico's infrastructure by narcotraffickers, and for a long time.

That's why we refer to it as a narco-terrorist state. Even now, the traffickers control the government - anyone who thinks Calderon operates without ties to the biggest and most powerful groups is deluded.

The gangs are Mexico and Mexico is the gangs. Anyone who resists that....ends up face down in the arroyo.

8 posted on 09/08/2010 6:53:27 PM PDT by Regulator (Watch Out!! The Americans are On the March!! America Forever, Mexico Never!)
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To: omega4179
Our troops will be in Mexico within a decade.

We might want to first think about liberating land geographically situated in this country. Currently, Mexico has de facto possession of large swaths of southern Arizona and much of our National Park acreage.

9 posted on 09/08/2010 7:15:10 PM PDT by ScottinVA (The West needs to act NOW to aggressively treat its metastasizing islaminoma!)
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To: Regulator
That's why we refer to it as a narco-terrorist state. Even now, the traffickers control the government - anyone who thinks Calderon operates without ties to the biggest and most powerful groups is deluded.

Government officials in Mexico are so inexorably tied to the drug cartels that giving Mexico any help fighting their "drug problem" is lining the pockets of government officials.

If Mexico wanted to fix this, they would. But they don't. Too many officials at every level benefit from the drug cartels for them to ever make real progress toward ending this mess.

10 posted on 09/08/2010 7:26:23 PM PDT by mountainbunny
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To: Kaslin
Sounds like something right out of The Road Warrior script.
11 posted on 09/08/2010 7:35:25 PM PDT by Charles Martel ("Endeavor to persevere...")
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To: Charles Martel

Our best hope would be to develop a coal powered automobile.


12 posted on 09/08/2010 7:38:27 PM PDT by Onceasoverigncitizen
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To: Kaslin; Clintonfatigued; Liz; sickoflibs; DoughtyOne; PGalt; mkjessup; blackie; SwinneySwitch; ...

Mexico is lost. We send them more Tax $$ every day.

For what???? The best thing Mexico offers in return is blame and a daily insult.

The article goes on to say that the U.S. has been pitifully dependent on Mexico for its energy supplies for some time, and energy analysts are worried about the underinvestment by Mexico in it’s own oil. An explosion Tuesday at the country’s third-largest refinery did nothing to allay those concerns.


13 posted on 09/09/2010 4:53:31 PM PDT by AuntB (Illegal immigration is simply more "share the wealth" socialism and a CRIME not a race!)
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To: omega4179

“Our troops will be in Mexico within a decade.”

Optimistic much? There won’t be a Mexico or USA within a decade at this rate. We become more like them every day.


14 posted on 09/09/2010 4:56:15 PM PDT by AuntB (Illegal immigration is simply more "share the wealth" socialism and a CRIME not a race!)
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To: mountainbunny

“Government officials in Mexico are so inexorably tied to the drug cartels that giving Mexico any help fighting their “drug problem” is lining the pockets of government officials.

If Mexico wanted to fix this, they would. But they don’t. Too many officials at every level benefit from the drug cartels for them to ever make real progress toward ending this mess.”

BINGO! It’s SO much easier to blame the USA!


15 posted on 09/09/2010 4:58:35 PM PDT by AuntB (Illegal immigration is simply more "share the wealth" socialism and a CRIME not a race!)
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To: AuntB

The world is full of liars.


16 posted on 09/09/2010 5:05:08 PM PDT by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
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To: AuntB
Mexico is lost. We send them more Tax $$ every day.
For what???? The best thing Mexico offers in return is blame and a daily insult.


Freshly made salsa, tortillas and enchiladas? They don't count? ;)
17 posted on 09/09/2010 5:18:22 PM PDT by mkjessup (0bama has LESS experience than did Jimmy Carter, guess how THIS train wreck is gonna turn out, eh?)
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To: mkjessup
Freshly made salsa, tortillas and enchiladas? They don't count? ;)

I learned a long time ago how to make these. I don't need no stinking Mexico to supply me with them. ;-)

18 posted on 09/09/2010 5:24:43 PM PDT by DejaJude
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To: AuntB

Without Mexico thousands of attorneys, judges, cops, prison guards, teachers, doctors, nurses, city, state and federal employees would be out of work. These people rely on Mexico for their jobs.

Where would Americans go to get their recreational and addiction drugs habits satisfied.

Mexico is an important parasite. Without it draining our resources we would be soaring ahead of the rest of the world. How would the elites maintain control over us? Martial law would have to be in effect.


19 posted on 09/09/2010 6:02:07 PM PDT by B4Ranch (Conflict is inevitable; Combat is an option. Train for the fight.)
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To: B4Ranch

“Without Mexico thousands of attorneys, judges, cops, prison guards, teachers, doctors, nurses, city, state and federal employees would be out of work. These people rely on Mexico for their jobs.......Mexico is an important parasite. Without it draining our resources we would be soaring ahead of the rest of the world.”

Hence outfits like SEIU, public employee unions, etc.

Parasitic relationship is exactly right. And the blood is all coming from those of us choosing not playing their insidious game.


20 posted on 09/09/2010 6:19:58 PM PDT by AuntB (Illegal immigration is simply more "share the wealth" socialism and a CRIME not a race!)
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