Pemex, gasolinazo, & huachicol Capt Linda Maria Arias

Overview Overview I. Mexico’s dependence on petroleum II. The effect of the gasolinazo III. The effect of anti-huachicol measures on Mexico IV. Retribution and current outcome V. Are anti-huachicol measures worth it? Review ¿

Mexico’s dependence on petroleum Mexico’s Economy Between 11th and 15th largest in the world Population = 125 million GDP = $17,150 per person Size of Economy = $1.140 trillion Crude Petroleum 5th largest exporter of crude petroleum U.S. receives 48% of the annual export of petroleum

Mexico’s dependence on petroleum Source: Pines, Lawrence. “Mexico’s Top Commodity Imports & Exports.” Commodity. Accessed March 12, 2019. https://commodity.com/mexico/.

The effect of the gasolinazo In 1938, Mexico expelled foreign oil companies & nationalized the oil industry In 2013, Enrique Peña Nieto concluded Pemex’s monopoly on oil reserves & allowed foreign companies to bid for offshore leases Mexican oil production started declining & domestic fuel consumption rose = low supply and high demand = price of gas increased Production of Mexico’s largest oilfield from 2.2 million to 162,255 barrels a day

The effect of the gasolinazo How the gasolinazo affected the 2018 election AMLO promised to stop the price increase of fuel Meade represented incumbent’s party, PRI Meade received back lash for gasolinazo as he was the Minister of Finance during Sep 2016-Nov 2017 Inaction produced lack of support in ballot box for Meade

The effect of anti-huachicol measures Huachicoleo Became household name due to act of stealing gas “Waach” has Mayan roots, describing outsiders Santa Rosa de Lima Cartel (CSRL) concentrates solely on gasoline theft Leader is José Antonio Yépez Ortiz, alias “El Marro” Blood war declared by CSRL with Jalisco New Generation Cartel (CJNG) Deathrate in Guanajuato has soared

The effect of anti-huachicol measures AMLO’s plan to combat 12,581 holes in pipelines, loss of $3 billion for Pemex: 3,200 Marines to guard pipelines Shutting down 6 major pipelines begin trucking gas in a fleet of trucks around the country purchased 500 additional tankers to support transportation Inefficiency created delays 10 states/59 million citizens affected

The effect of anti-huachicol measures What has the government and Pemex told the public to do? Not to make panic purchases Requested patience Pemex reassured the Mexican population that there is enough gas in the Storage & Dispatch Terminals (TAD) for the whole country Pemex also reassured that issues that have occurred have come about because of an adjustment to logistics

Retribution and current outcome Threatening the President Narcomanta inscribed “Remove the security forces of Guanajuato, if not, I'll start killing you along with innocent people to demonstrate that this is not a game.” Signed by El Marro of CSRL Claims he was framed by CJNG

Retribution and current outcome Gas saved 7.8 billion Mexican Pesos or 406 million USD worth of gasoline Daily, 56,000 barrels of gas were being taken, reduced to 8,000 barrels a day AMLO has claimed that money can go back to benefit the Mexican people Will not have to place new taxes, he will be able to create new jobs, and new development projects can be developed 104 of 174 people associated with huachicoleo arrested

Are anti-huachicol measures worth it? Yes and No López Obrador is asserting that problem is solved Cartel is a multi-million dollar illicit industry & the leader is at large Mexico is riddled with poverty and corruption. With huachicoleros arrested, the organization will quickly find others to fill their place Pemex may have saved money, but… Hopefully it will go back to people of Mexico

Review Overview I. Mexico’s dependence on petroleum II. The effect of the gazolinazo III. The effect of anti-huachicol measures on Mexico IV. Retribution and current outcome V. Are anti-huachicol measures worth it? Review ¿

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