1. Pemex, gasolinazo, & huachicol Capt Linda Maria Arias

2. 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

3. 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

4. Mexico’s dependence on petroleum
Source: Pines, Lawrence. “Mexico’s Top Commodity Imports & Exports.” Commodity. Accessed March 12,

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. ¿Preguntas?