A different sort of Mexican cartel
Very interesting look at the problems of the Mexican oil industry over at Townhall. It’s not really their usual format–not that there’s anything wrong with their usual format, they’ve got a top-notch stable of columnists over there, and it’s a daily stop for me–but this is longer and wonkier than a lot of their usual writers.* I like it because it’s a great introduction to the problems in the energy production of our number-three source of imported oil.
You won’t be surprised to learn that most of those problems stem from politics–specifically, a nationalized oil industry like the one some Democratic congressmen are advocating for our country. It’s a great exposition of why nationalizing an industry doesn’t crimp profiteering– people are still making vast fortunes off Mexican oil; they’re just doing so under the table. And despite the high price of oil right now, because of the endemic corruption in the system, Pemex isn’t making very much money.
The politics, by the way, are fascinating. I didn’t realize that the date of the nationalization of the industry is celebrated as a national holiday. That’s a clever way to maintain your monopoly–make it a matter of patriotism.
Incidentally, it’s not just Mexico’s economy, our own nationalization debate and our price at the gas pump that are affected by Pemex’s monopoly. It reaches another issue of interest to this blog:
Put another way, if prices were to dramatically drop, the Mexican government would have to increase subsidies to Pemex (the company needs $9 billion right now just to repair infrastructure), and raise taxes on everyone else, lest it be unable to provide many basic services. Take heed, America: Such a scenario may trigger even more immigration, including the illegal kind, to our country, in turn further raising pressure for amnesty. Mexico’s oil industry corruption is our problem, not just theirs.
*Most of their daily updates are newspaper-length columns, which are usually written within a tight word count to fit in dead-tree papers.
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{Post by See-Dubya. More about the Pemex pipeline bombings here.}
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now if only we could develope a car that runs on drugs.
Here in California, there are numerous people who believe marijuana has magical powers, so I’ll bet there’s somebody out there thinking along those lines.
Oh well, after we establish the US of Mexafornia, we’ll privatize the whole thing again and sell it.
Oooooh, but the exhaust, so many tail-gaiters…
I’d follow you everywhere. Second hand smoke is a killer.
OK, so if we make bio-marajuana-fuel and drive the price of pot through the roof… riots in Berkeley & the price of corn goes down… plus all of those nice people staying home to grow the stuff… hmmmm, time to end the war on drugs???
Example:” At the Pemex ammonia processing plant in Ciudad Camargo, closed for a half-dozen years, paid workers still show up, waiting for something to do. The concept of productivity doesn’t seem to register.”
Nationalize our oil companies,use Government workers and waala.
Maybe we should just beat the La Raza and Reconquista crowds to the punch and simply annex Mexico …
our southern border would be a lot less miles to guard from invasion …
maybe the Dems wouldn’t object to expanding the oil drilling in Mexico like they do on home soil …
/srac off/
Naturally. All the ones who want to work are over here.
That link reads like both a How-To Manual and a Wish List for Democrats. No wonder that NY congresscritter was salivating about nationalizing oil companies. Imagine what sort of ‘welfare’ schemes could come from all of Exxon.
RECONQUISTA- the American oil sights and buildings and OIL -oil- oil—”nationalized” by the corrupt – Mexican government in the early 1900s
U.S. $$$$$$$ via oil drilling investments stolen by a corrupt Mexican cartel of government leaders.
Just goes to show-written agreements do not work with dishonest people.
Thanks for the link to the Townhall history lesson.
CS ….
That same line of thinking applies to every country in the world that has an oil industry run by the country …
virtually all of them nationalized the holdings of either an American or a British oil company …
DL.
That is why we cannot allow our own government “servants” to take control of anything not spelled out in the Constitution – ever again.
The Constitution is clear that government should be limited.
PS – I always enjoy reading your posts.
CS …
Thanks … I find most everyone posting on here is worth reading … even some of our trolls … don’t agree with them much of course …
I think it is important to know the direction and level of emotional irrationality coming from the other side on the issues in order to be better prepared to refute their often ridiculous claims …
Mark in Mexico’s (in MMs Blog list) last posts were about PEMEX, then he disappeared.
Does anyone know what happened? Its been over a year now.
When Petroleos Mexicanos is referred to as Pemex, how is that pronounced? Because, if Pemex is pronounced like PeeMex, then I hope they don’t expand to exporting Mexican beer.
You’re killin’ me Brooklyn. haha.
Well, since we are building up their southern border instead of our southern border, maybe the groundwork for that is being laid…
Oooooh, let’s take Canada too… 15 million more on the doll but lotsa resources…
DesertLover said:
I was thinking the same thing. Annex Mexico then spit the country up into 7 states.
“I was thinking the same thing. Annex Mexico then spit the country up into 7 states.”
Making 57 states!! Obama is a prophet!
Goldwater Knight
hmmmm … making Obama a seer?
Pemex and Mexico, Kakistocracy.
This is an incredible look at one facit of the corruption of the great la raza. I lived in Eastern Europe and traveled Russia for a while back in the late 80’s and early 90’s and had firsthand experience with the corruption there but they have nothing on the corrupt Mexicans.
Makes one wonder how much $$ and to whom its coming north of the border to keep the Beltway folks from building the fence.
And how Wachovia is tangled up in it.
Up the great la raza!
That kind of corruption runs deep in Mexico. How any country can screw but billions in oil revenues is beyond me, but they all seem to.
but nationalizing the oil industry, under the leadership of Obama (pbuh), is bound to work this time
Can’t we clone Reagan?
GK– Next best thing.
Theoretically, we could look at the illegal immigration, as well as the appearance of Mexican soldiers across our borders, as an invasion. Maybe we should invade Mexico and make it a territory, such as Puerto Rico. Then we would have plenty of oil and could fix the poverty issues there. As much as our government stinks, it looks like Mother Teresa compared to the Mexican government.
I realize this may sound crazy, but it would be a far better solution than open borders, where all we get is another country’s poor to care for.
As for Goldwater Knight comment about cloning Reagan, I’m starting to have some really good vibes about Bobby Jindal.
I get your point dubs, whinging for Reagan won’t get you anywhere. However, Reagan’s farewell speech lets me know what has to be done.
Out of curiousity, is there anything that doesn’t increase illegal immigration?
We could have: Texico, Louisexico, Arazexico, Californico, Nevadico, North Carolexico and South Carolexico.
Oh, and Baraque Oguano…
Didn’t we already do that at the battle of San Jacinto?
That ain’t working too well for us. But I do like the thought of invading Mexico.
Kinda like nuclear karma…
Please check his blog. I usually don’t check his blog but I would like to hear what he has.
MarkinMexico
I have advocated annexing Mexico and Canada (except Quebec) for some time now. If they had a referendum in Mexico to dump their Corruptocracy and join the U.S., what do you think the outcome would be?
Beware unintended consequences. I to have thought maybe that is the answer. If we are not going to grow b*lls and stand up to this invasion then we might as well get something back. However, the one sure thing that would result is a democratic majority forever. Think about it. 100M new voters, 98% of which are destitute and have a definite tendency toward socialism. They would soon figure out that they could vote (or extort from pols) themselves more of our $ via redistribution. Our tax rates would skyrocket to help pay for the poor (of course all under the guise of “helping the children”). In the end, they would kill the goose that laid the golden egg. Then we will all end up living in horrible conditions under the thumb of a dictatorial gov’t.