BajaNomad - Nationalization of Oil Supplies and the Mexican Consumer

Nationalization of Oil Supplies and the Mexican Consumer

Ken Cooke - 5-20-2012 at 09:39 PM

link: http://en.wikipedia.org/wiki/Mexican_oil_expropriation

The Mexican oil expropriation (Spanish: expropiación petrolera) (also petroleum expropriation, petroleum nationalization, etc.) was the expropriation of all oil reserves, facilities, and foreign oil companies in Mexico in 1938. It took place when President and General Lázaro Cárdenas declared that all mineral and oil reserves found within Mexico belong to the nation. It is one of the Fiestas Patrias of Mexico, celebrating the date when the President, General Lázaro Cárdenas, declared that all oil reserves found in Mexican soil belonged to the nation, following the principle stated in the Article 27 of the Constitution of 1917. This measure caused an international boycott of Mexican products in the following years, especially by the United States, the United Kingdom and the Netherlands.

Had this Expropriation not taken place, I wonder what state the Mexican Consumer would be in due to whims of the Global Economy?

link: http://bottomline.msnbc.msn.com/_news/2012/05/20/11780757-pr...

According to the survey of some 2,500 gas stations in the continental United States, the national average for regular gasoline as of May 18, was down more than 12 cents a gallon compared with a year earlier.

link: http://en.wikipedia.org/wiki/Mexican_oil_expropriation

The political support of labor unions and the founding of Petromex (before Pemex) immediately after taking power by President Lazaro Card##as, were the proximate events closest to the Petroleum Expropriation.

Just some food for thought. :light:

Barry A. - 5-20-2012 at 10:03 PM

Yes, and the Mexican Oil Industry has been going down hill ever since, from what I hear and read. The ramifications of this expropriation of private companies and industries in Mexico will never be fully known, but it ain't good from what I understand. Even now, the oil industry in Mexico is in shambles, and needs some good private incentivised management to put it back on track-----but that ain't going to happen.

Barry

Ken Cooke - 5-21-2012 at 06:18 PM

Quote:

Originally posted by Barry A.
Yes, and the Mexican Oil Industry has been going down hill ever since, from what I hear and read.

Barry

Barry - From what you heard and read?? Do you have any sources to contribute?

Ken, how about the Wharton School??

thebajarunner - 5-21-2012 at 06:26 PM

Quote:

Originally posted by Ken Cooke

Quote:

Originally posted by Barry A.
Yes, and the Mexican Oil Industry has been going down hill ever since, from what I hear and read.

Barry

Barry - From what you heard and read?? Do you have any sources to contribute?

The Wharton School of Busness at UPenn is one of the world's most prestigious....
Here is what they have to say..

http://knowledge.wharton.upenn.edu/printer_friendly.cfm?arti...

The government management of Pemex is one of the real economic disasters of our time,
As if Mexico did not have enough problems the gov has managed to rape, rob, plunder and waste this resource.

Read it and weep, my friend...

Bajaboy - 5-21-2012 at 06:56 PM

I get nervous when people reference Wikipedia for info :light:

Ken Cooke - 5-21-2012 at 07:08 PM

Quote:

Originally posted by Bajaboy
I get nervous when people reference Wikipedia for info :light:

It's all about primary sources. You are right, Bajaboy. :light:

Ken Cooke - 5-21-2012 at 08:58 PM

Quote:

Originally posted by thebajarunner

Quote:

Originally posted by Ken Cooke

Quote:

Originally posted by Barry A.
Yes, and the Mexican Oil Industry has been going down hill ever since, from what I hear and read.

Barry

Barry - From what you heard and read?? Do you have any sources to contribute?

This is not good news. What will Pemex do in another 20 years?

Barry A. - 5-21-2012 at 10:06 PM

If they were smart, they would turn PEMEX back over to the Corporations that they took it away from. Governments just don't have a good history of "running things" very efficiently.

Barry

mtgoat666 - 5-21-2012 at 10:25 PM

Quote:

Originally posted by Barry A.
If they were smart, they would turn PEMEX back over to the Corporations that they took it away from. Governments just don't have a good history of "running things" very efficiently.

"Efficiency" may not be the goal. The oil belongs to the citizens. Citizens may manage their assets how they want. Mexicans seem pretty smart: they got cheap petroleum -- and gringos are dumba$$e$ that pay too much for petroleum, eh??????????????????????????????

Speaking of countries vs companies running things well: which bank do you trust more? The federal reserve or wall st bankers??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????????????????????????????????????????????????

Cypress - 5-22-2012 at 05:08 AM

Govt. vs companies running things? Companies generally have to balance their books. Check out what's happening in Greece , Spain and other countries. Not a pretty picture, compliments of their governments.

Clearly you did not read the Wharton piece

thebajarunner - 5-22-2012 at 07:41 AM

Quote:

Originally posted by mtgoat666

Quote:

Take the time to click to the site and read the entire piece. It comes out of a hugely respected source,
and it damns everything that Pemex has done.
The saddest part is that the literal rape of this entire enterprise will deny Mexico petroleum sources in the future when it needs them the most.
Sad. So sad.
Once again Mexico shoots itself in the foot.
You, sir, have fallen into this liberal thinking trap that government is good,
and, what does banking have to do with the problems of Pemex?
Lord only knows how screwed up the Mexican banking system is, again, fully controlled by the gov.
And I cannot answer your last question because since Roosevelt our government has linked so tightly to the banks that they are one and the same.
Our government needs to get out of the banking insurance biz and let the market (and the investors) be responsible.

But, alas, this little tirade has taken us away from the topic at hand- the looming disaster of the Mexican oil industry.

wessongroup - 5-22-2012 at 08:02 AM

Good one runner ...

By the way, how did that "Nationalization" work out in the middle east... :lol:

and a few others ...

Greed is the same apparently regardless of: nationality, race, culture, politics, gender and religion

[Edited on 5-22-2012 by wessongroup]

[Edited on 5-22-2012 by wessongroup]

David K - 5-22-2012 at 08:24 AM

If a lib doesn't like an answer, they insult the source. If the same source is an answer they like, then of course it is valid!

The funny part is how in the world can BIG GOVERNMENT be better than Big Business? For a business to be big it must create a product or service that people WANT or need, and the people CHOOSE to purchase it.

For a government to become big, it must TAKE from the people who produce, by force (taxes, fees, etc.) and operate services without competition.

BIG GOVERNMENT makes more profit from gasoline than does Big Oil... WHY? Big Oil is how we have the gasoline. They take all the risks to find it and mine it and refine it and deliver it... all for a dime a gallon profit.

BIG GOVERNMENT prevents Big Oil from finding gas, forces them to buy from other (less friendly sometimes) countries, makes Big Oil the enemy in political talk... all while taking over FOUR times the profit on each gallon of gas sold!

When the world prices are high, does BIG GOVERNMENT offer to drop its profit from a gallon of gas? No, they blame Big Oil for the high price.

It is really amazing...