Forum Discussion
MEXICOWANDERER
Dec 08, 2017Explorer
The big obstacle has always been the Pemex oil worker's union. Until the graft and corruption has been ironed out (?) No US refiner would be foolish enough to invest billions in Mexico.
Brazen fuel pipeline thefts? They are orchestrated by Pemex employees. The sindicato is so close to the carteleros, it's hard to tell between the two.
There are two reasons why Pemex chose to import fuel
a)Astronomical cost of repairing and upgrading refineries and fuel is needed NOW, not in three or five years.
b) A union where the president makes more money than the entire board of directors of Petroleos Mexicanos.
How bad is theft?
A few days ago a train was robbed near Puebla and ONE THOUSAND TONS of grain feed for animals was unloaded and carted away.
La Republica is facing a daunting task to keep cartels from stealing the family jewels. At home in Lazaro Cardenas an ore carrier was loaded with tens of thousands of tons of iron ore diverted from the Mittal operation, and the freighter sailed off into the sunset.
Importing fuel will let the oil worker's union know the ramifications of running a collection agency. In fact I think last month the union came crawling to the bargaining table (on the 7th). Importing oil will also ease the strain of outstretched hands in the camaras of diputados and senadores. The institution was being bled to death.
So Pemex decides to abdicate processing oil and a flood of extraneous processed oil products is entering the country.
Looks like a good hunk of the country will have UBA by the end of 2018. But south of Mexico City and West of Villahermosa will be a real challenge.
I wouldn't look for any changes in MAGNA in the near future. Having used both Mexican Magna and USA Magna, there is a sharp quality difference between the two in my overly sensitive toad engine.
Again Mexico DF will lead the way for Magna upgrades or importation to get the USA lower sulfur fuel. It'll be because of emissions in Mexico City.
Brazen fuel pipeline thefts? They are orchestrated by Pemex employees. The sindicato is so close to the carteleros, it's hard to tell between the two.
There are two reasons why Pemex chose to import fuel
a)Astronomical cost of repairing and upgrading refineries and fuel is needed NOW, not in three or five years.
b) A union where the president makes more money than the entire board of directors of Petroleos Mexicanos.
How bad is theft?
A few days ago a train was robbed near Puebla and ONE THOUSAND TONS of grain feed for animals was unloaded and carted away.
La Republica is facing a daunting task to keep cartels from stealing the family jewels. At home in Lazaro Cardenas an ore carrier was loaded with tens of thousands of tons of iron ore diverted from the Mittal operation, and the freighter sailed off into the sunset.
Importing fuel will let the oil worker's union know the ramifications of running a collection agency. In fact I think last month the union came crawling to the bargaining table (on the 7th). Importing oil will also ease the strain of outstretched hands in the camaras of diputados and senadores. The institution was being bled to death.
So Pemex decides to abdicate processing oil and a flood of extraneous processed oil products is entering the country.
Looks like a good hunk of the country will have UBA by the end of 2018. But south of Mexico City and West of Villahermosa will be a real challenge.
I wouldn't look for any changes in MAGNA in the near future. Having used both Mexican Magna and USA Magna, there is a sharp quality difference between the two in my overly sensitive toad engine.
Again Mexico DF will lead the way for Magna upgrades or importation to get the USA lower sulfur fuel. It'll be because of emissions in Mexico City.
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