The Mexican oil article is rather disquieting. Looming Energy Crisis In Mexico Stirs Debate is the title, and things don’t get any cheerier after that. I think of Mexico as a country that HAS oil, but while that is true now, Pemex has been enough of a cash cow for the government, according to the article, that reserves could run short as soon as seven years from now. Funding that could have gone into improving long-term oil production has been diverted in a variety of ways. Of course “could run short” is not the same thing as “will run short.” We’ll see.
Here’s another bit: “Despite being a major oil exporter, Mexico imports 40 percent of its gasoline because Pemex does not have the capacity to refine its own crude.” I knew that importation was occurring, but I didn’t realize it was that high a percentage of the gasoline. Oddly, while gas prices at the pump up north have done their big climbs, our prices have only gone up a little. That’s because the federal government here in Mexico subsidizes gas prices at the pump.
Turning to corn, Corn Patches and Dispatches:Notes on a recent trip to Mexico is an article that ranges from milpas (cornfields or small farm fields) to Wal-Mart. Some (but not all) of the comments were interesting too.
That shows an appalling lack of forethought, not setting aside some profits to develop refineries. Makes you wonder when it’s going to hit the fan, doesn’t it?