In this article by Reuters, Mexico has many resource rich areas, similar to Venezuela, but on the verge of collapse, based on rampant organized crime and the danger of security.
The Permian Basin in West Texas is the largest oil field in the United States. This field runs from Odessa-Midland, Texas south and west and includes the SE corner of New Mexico. With fracking, this formation now has the United States with a net exporter of oil & gas, and no longer dependent on the Mideast or Venezuela or Russia for their oil & gas product.
Below the Permian Basin, is the second largest oilfield, the Eagle Ford formation in southern Texas. Fracking here, as well, opened access to billions more barrels of oil.
In northern Mexico we have the Burgos Basin, which is located in Tamaulipas, , that has large amounts of oil and gas, but is not extractable through regular drilling, much less fracking. This oilfield is terrorized by gangs and cartels. Again we see a sovereign nation, not being able to function, because of dysfunction, based on anarchy. 84% of Mexico's natural gas is now imported from the states.
When Mexico cannot afford to address security, but can afford to lose billions, the strategy is incomprehensible. The Zetas and Gulf cartel have more power than them?
Oil & gas jobs are mainly hispanic now in the states, and they come over the border to work the oilfields. How can they come to the United States and work, but can't work in their own country? It's more than a river, it's a governmental structural flaw.
Today, AMLO in Tabasco announces plan to build a new refinery in his home state of Tabasco. He also plans on upgrading several other refineries. He wants Mexico to lead the work, since foreign investment has not worked, based primarily on their lack of security. The work is to come from savings in his austerity program. Today Mexico imports 80% of their gas and he wants Mexico to get where they can cover 70% of their fuel needs. This is after 14 years of declining production in Mexico.
We see where Venezuela, holder of the largest oil reserves in this hemisphere, has been unable to tap those resources to provide basic needs of it's people and appears to be heading for default on their bonds. This occurred after Hugo acquired leadership, nationalized it's oil industry, kicked the foreigners out, and this industry declined to abysmal levels of production. Maduro, has proven, even more incompetent in his handling of their mineral resources. They only seek, to satisfy theirselves and use repression, against the people that know they are struggling just to eat.
Hopefully AMLO does not follow this path, but I must say that AMLO proclaiming that homicide has declined with his leadership, surely understands how stupid this proclamation is, coming barely over 1 week of rule.
Hopefully, he is not telling his people that the tide has turned, because his application of socialism, that has never worked in world history. I do hope he is the first to prove, that this form of government, can work for all the people of Mexico.
Chava, thanks for sharing. So Romero Deschamps, as the union boss, in Salamanca, home of Mexico's largest refinery is gifted with money for being the head of the union. Pemex cedes the property to the union, where they build an Oxxo, funeral home, restaurant. For his position as head of the union, he is given money, where he builds a mansion in Acapulco and has photos and of him and his wife shopping at Harrod's in London.
Seems like Romero will become acquainted with Astudillo and the attorney general Aguirre, at the cocktail parties in the city.