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Tag Archives: Pemex

Mexico Kicks Off War on its Vast Black Market for Oil

“We’re not just talking about the theft of oil, but about a plan involving government insiders and a complex distribution system. It’s not easy to distribute and sell the pilfered contents of 600 pipelines each and every day.” By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Mexico’s new government has launched a multi-pronged offensive against the rampant oil theft that is costing state-owned oil company Petroleos Mexicanos (Pemex) billions of dollars a year and...

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Uncertainty Grips Troubled Pemex, World’s Most Indebted Oil Company

“Even a small deterioration” in its perceived credit risk could take a big financial toll on Mexico. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Mexico’s President-elect, Andrés Manuel Lopez Obrador (AMLO), does not enter office until December 1, but he’s already making big waves, particularly in the oil and gas industry. On the campaign trail, he pledged to reverse aspects of his predecessor Enrique Peña Nieto’s sweeping oil privatization reforms, suspend new oil...

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Already Troubled Pemex & Mexico’s Oil Industry Wake Up in a New World

Tectonic shifts and clouds of uncertainty after Sunday’s election. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Since the election on July 1 of veteran leftist politician Andres Manuel Lopez Obrador (AMLO for short), a dark cloud of uncertainty has gathered over the future of Mexico’s oil industry, which was already in dire enough straits. After decades of chronic mismanagement, unfettered corruption, and declining oil reserves, Mexico’s state-owned oil empire,...

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Mexico’s Gasoline Thieves Go Full Mad Max As Competing Cartels Declare War On Each Other And The Army

Fuel theft in Mexico used to consist of a few villagers drilling holes in Pemex pipelines and carrying away just enough gasoline to fill their vehicles and maybe a couple extra gallons to sell on the side of the freeway.  But as The Columbian notes, illegally tapping into pipelines and stealing gas from Mexico's state-owned oil company has morphed into a very well organized criminal enterprise, run by well-armed regional cartels and supported by distribution on a commercial scale to factories...

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Mexican Drug Cartels Looting State-Owned Gas Pipelines For Black Market Sales

A couple of weeks ago we highlighted the protests that had engulfed Mexico after the finance ministry announced plans to raise gasoline prices by 20.1% starting January 1st.  Amid the chaos, the country's powerful Jalisco New Generation cartel threatened to to burn down gas stations as retribution for taking advantage of "the majority of the people who don't make even a minimum wage." But before readers blow this off as just another protest by an angry population which fails to grasp...

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Pemex Collapse Threatens Biggest Banks in Mexico

Big-oil bailout already under way. By Don Quijones, Spain & Mexico, editor at WOLF STREET. These days, the trend is not Pemex’s friend. Mexico’s loss-leading, debt-swamped, state-owned oil giant company announced that in July it had imported 554,000 barrels of oil a day — its highest monthly volume of imports since public records began in 1990. In total, two-thirds of all the oil Mexico consumed in July was imported — a staggering statistic for a country that until not so long ago...

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Big-Oil Sinkhole of Debt & Corruption Gets Taxpayer Bailout. Wall Street Thrilled

Taxpayers in Mexico Brace for a New Round of Plunder By Don Quijones, Spain & Mexico, editor at WOLF STREET. How the mighty are fallen. Pemex, Mexico’s state-owned oil giant, once a goliath on the global energy scene, is now dependent on state aid to meet its day-to-day needs. Mexico’s Finance Ministry announced a series of measures aimed at loosening Pemex’s financial strains, giving the state-owned giant a decidedly short-term $4.2 billion liquidity boost. That includes a capital...

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Debt Spiral Grips Both, Pemex and Mexico

Nightmare is coming true. By Don Quijones, Spain & Mexico, editor at WOLF STREET. It was just a matter of time before Pemex, Mexico’s chronically indebted state-owned oil giant, began dragging down the national economy it had almost single handedly sustained for over 75 years. The company has been bleeding losses for 13 straight quarters. As of December 31, it had $114.3 billion in assets and $180.6 billion in liabilities, a good chunk of it denominated in dollars, leaving a gaping...

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Big-Oil Bailout Begins as Debt Spirals Down

Mexico’s proud sugar daddy becomes giant financial sinkhole. By Don Quijones, Spain & Mexico, editor at WOLF STREET. Pemex, Mexico’s state-owned oil giant, cannot seem to get a break these days. It notched up 13 straight quarters of rising losses. It now owes over $80 billion to international investors and banks. It needs to raise $23 billion this year to stay afloat. The cost of servicing that gargantuan debt mountain continues to rise. So it tries desperately to rein in its spending,...

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Desperate Oil Giant Pemex Makes a Deal with KKR

On the bright side, it’s not bankrupt – according to the new CEO By Don Quijones, Spain & Mexico, editor at WOLF STREET. For the last 77 years, Mexico’s state oil company, Pemex, has almost single-handedly funded the economic development of the world’s 15th largest economy. But now the national treasure is drowning in debt. In 2016, over $11 billion of the company’s corporate bonds will mature and need to be refinanced. In total, the company will need to raise about $23 billion in 2016,...

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