fulano
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Calderon Speech 5/26/2008
We get the Tijuana TV station in San Diego County and on this evening's news was a speech by president Felipe Calderon. He said he was taking some
immediate measures to cut inflation in Mexico and insure food security. He said Mexico would continue to subsidize the price of gasoline to keep it
below market prices, Mexico has dropped most tariffs on imports of staple foods such as corn, rice and beans, and that they would be paying out some
kind of a cash subsidy of 120 pesos per month to some families to offset the rising price of food.
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DENNIS
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| Quote: | Originally posted by fulano
He said Mexico would continue to subsidize the price of gasoline to keep it below market prices, |
Well, I'm obviously not an economist but, Mexico refines her own oil so what do world market prices have to do with Mexico subsidizing her own
industry?
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rts551
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| Quote: | Originally posted by DENNIS
| Quote: | Originally posted by fulano
He said Mexico would continue to subsidize the price of gasoline to keep it below market prices, |
Well, I'm obviously not an economist but, Mexico refines her own oil so what do world market prices have to do with Mexico subsidizing her own
industry? |
Last year Mexico had to import about 45% of its gasoline.
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Diver
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The other question would be how much it costs for Pemex to produce and refine the fuels - or pay for refining in the US ?
Also, without additional revenue for exploration and new facilities how will Pemex succeed in the future ? Aren't they are starving the "gift horse".
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fulano
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| Quote: | Originally posted by Diver
The other question would be how much it costs for Pemex to produce and refine the fuels - or pay for refining in the US ?
Also, without additional revenue for exploration and new facilities how will Pemex succeed in the future ? Aren't they are starving the "gift horse".
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Mexico doesn't pay for refining in the US. It buys the gasolline at market prices, just like everybody else. Mexico lacks the refining capacity to
meet its internal demand for gasoline. Not only that, the refineries it does have, are only set up to refine the lighter crudes, and most of Mexico's
crude is heavy. Thus it goes to the US for refining.
Mexico only has about 9 years of oil in proven reserves. They are up against the wall, as the oil revenues have been what kept the government afloat,
masking its failure to develop the economy in other areas. There's little new oil development coming out of Mexico because all the oil was
nationalized back in the 1930's. Thus there is almost no foreign investment for exploration, and the Mexican government has just been stripping PEMEX
of all its revenues without reinvesting in exploration and exploitation of new oil fields.
Mexican oil production is falling off rapidly, but the revenue impact has been shielded by the rapid rise in oil prices. If oil should suddenly fall
back to what it was 2 year ago, about $60/bbl, Mexico would start defaulting on its foreign debt (again).
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rts551
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| Quote: | Originally posted by fulano
Mexican oil production is falling off rapidly, but the revenue impact has been shielded by the rapid rise in oil prices. If oil should suddenly fall
back to what it was 2 year ago, about $60/bbl, Mexico would start defaulting on its foreign debt (again). |
You must be looking for a new job as a comedian!
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Barry A.
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Mood: optimistic
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| Quote: | Originally posted by rts551
| Quote: | Originally posted by fulano
Mexican oil production is falling off rapidly, but the revenue impact has been shielded by the rapid rise in oil prices. If oil should suddenly fall
back to what it was 2 year ago, about $60/bbl, Mexico would start defaulting on its foreign debt (again). |
You must be looking for a new job as a comedian! |
The statement by Futano is 100% correct, from my sources anyway.
barry
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DianaT
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| Quote: | Originally posted by Barry A.
| Quote: | Originally posted by rts551
| Quote: | Originally posted by fulano
Mexican oil production is falling off rapidly, but the revenue impact has been shielded by the rapid rise in oil prices. If oil should suddenly fall
back to what it was 2 year ago, about $60/bbl, Mexico would start defaulting on its foreign debt (again). |
You must be looking for a new job as a comedian! |
The statement by Futano is 100% correct, from my sources anyway.
barry |
The part about defaulting on their debt is easy to believe, but the idea of $60/bbl made me laugh. 
Diane
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DENNIS
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| Quote: | Originally posted by rts551
Last year Mexico had to import about 45% of its gasoline. |
I would assume that's from the US. Hearing the arguement that the US doesn't have enough refinerys to keep up with US demand, how can we explain
that we can supply Mexico but not ourselves?
As usual, I'm confused.
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rts551
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Barry - $60 a barrel is long gone... no matter what your sources say
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rts551
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http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publicatio...
For some idea of petroleum product exports from the US
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Iflyfish
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rts551
I wonder if crude exported to the US for refining and then returned counts in this report?
Iflyfish
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vgabndo
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Those are some interesting export figures. One of our Canadian nomads reported on another thread that gas prices ( on that day ) were about the same
as here. Is the US selling them fuel at COST? The middle man always gets a cut...right?
Undoubtedly, there are people who cannot afford to give the anchor of sanity even the slightest tug. Sam Harris
"The situation is far too dire for pessimism."
Bill Kauth
Carl Sagan said, "We are a way for the cosmos to know itself."
PEACE, LOVE AND FISH TACOS
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rts551
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| Quote: | Originally posted by Iflyfish
rts551
I wonder if crude exported to the US for refining and then returned counts in this report?
Iflyfish |
Most definitely. As I understand it. Mexico trades Crude for refined products.
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fulano
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| Quote: | Originally posted by vgabndo
One of our Canadian nomads reported on another thread that gas prices ( on that day ) were about the same as here. Is the US selling them fuel at
COST? The middle man always gets a cut...right? |
Gas is right around US$5/gallon in Vancouver, BC. right now.
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