8,494 Active Recruiters     Over 2 Million Candidates Globally

  1. Keep me logged in
  2. forgot password

Checkout Jobs Basket (0)

You can checkout a maximum of 150 jobs.

Signup Better for Candidates

  • Create a free virtual CV and let recruiters find you
  • Automatically have your profile matched to suitable Oil & Gas positions
  • Link to your profile using it as a free online CV
  • Store all your employment documents to your profile for easy sending
  • Always receive feedback on positions applied for

Signup Better for Recruiters

  • Suitable candidates automatically matched to your position
  • View candidate profiles for free
  • No more waiting for candidates to respond to job advertisements
  • Only ever pay when you match a candidate to a position
  • No more cold calling and sorting through out dated CVs

Pemex's Pipeline Blast Caused by Rampant Fuel Theft, AMLO Increases Security, Again

Published in Oil Industry News on Wednesday, 23 January 2019

Graphic for News Item: Pemex's Pipeline Blast Caused by Rampant Fuel Theft, AMLO Increases Security, Again

Mexico President Andres Manuel Lopez Obrador is doubling down on a controversial strategy to end fuel theft at Petroleos Mexicanos after a pipeline explosion caused by an illegal tap left at least 89 people dead and many injured. He joins a long line of presidents who have tried to fix Mexico’s struggling state oil producer -- with little to show for it.

The leftist leader who took office on Dec. 1 has sought to combat the $3.5 billion trade in illicit fuel by increasing pipeline surveillance, improving technology and using more tanker trucks to transport gasoline. Lopez Obrador said the explosion won’t sway him from his strategy to end fuel theft.

“Rather than stopping the strategy, the fight against the illegality and theft of fuel will be strengthened,” the president, known as AMLO, told reporters following the incident.

Hundreds of people ignored orders from soldiers and gathered in Tlahuelilpan, in the central state of Hidalgo, to steal gasoline from a pipeline leak when it caught fire on Friday. The situation swiftly became unmanageable as crowds swelled and the army was unable to control it even after sending in reinforcements. A nearly four-hour lag between the leak alert and the closure of the valves was due to protocols at Pemex, the government said. There is an investigation into whether there was corruption or negligence in Pemex’s downstream control center, Lopez Obrador told reporters during his daily press conference on Monday.


‘Broken’ model

The blast is the latest in a series of problems facing Pemex, which has seen oil output decline every year since 2004 and is Latin America’s most indebted borrower. Pemex reports as many as 41 illegal pipeline taps a day and the fact that the blast occurred in spite of the government fuel theft crackdown “continues to show that the model is broken,” said John Padilla, managing director of energy consultant IPD Latin America LLC. “Every administration comes in with their magic bullet solution and they’ve all systematically failed,” he said.

Lopez Obrador isn’t the first president accused of underestimating the challenges of fixing Pemex, the nation’s biggest company. Blunders have run the gamut from Vicente Fox’s failed proposal to stock Pemex’s board with business elite including media mogul Carlos Slim, to Felipe Calderon’s investments in both the Chicontepec field and Spain’s Repsol that ended in political strife and squandered spending.

His predecessor Enrique Pena Nieto, who went so far as to change Mexico’s constitution and end Pemex’s oil monopoly after almost eight decades of nationalism, was no exception. He paved the way for Lopez Obrador’s July 1 election victory after Mexicans blamed the energy reforms for raising gasoline prices.

Investor concern

The new president’s recent actions have done little to persuade investors that his plans for Pemex will fare better. Convinced that eradicating corruption will cure all the problems of the ailing state-oil behemoth, Lopez Obrador appointed a political ally with no background in oil, Octavio Romero, as its chief executive. Earlier this month, Pemex’s new chief financial officer, Alberto Velazquez, bungled his first meeting with bondholders in New York.

The president’s proposal to build an $8 billion refinery in his home state of Tabasco echoes Calderon’s failed initiative to install a $12 billion refinery in Hidalgo. After racking up millions of dollars in accrued expenses, the project was eventually scrapped under Pena Nieto’s administration.

Lopez Obrador’s decision to terminate the pet project of his predecessor -- the Mexico City airport that caused almost $5 billion in wasted spending and cancellation fees -- is another example of the short-term political thinking that now threatens his own government.

The mounting cost of keeping pipelines closed and expending resources to buy tanker trucks and deploy the military is very hard to maintain over the long-term, warns IPD’s Padilla. “If there’s anything that this tragedy shows, it’s that this is a highly complicated, multipronged issue that is not going to be resolved overnight.”

Source: www.worldoil.com

Please leave comments and feedback below


Mexico Oil and Gas, Mexican Oil and Gas, Pemex Oil and Gas, Gulf of Mexico Oil and Gas, Oil and Gas News

Oil and Gas News Archive

Latest Oil & Gas News

Featured Companies

  • View All JobsOMPA

    Offshore Marine People & Academy (OMPA) is a global provider of personnel and training to the renewables, oil & gas, telecommunications and marine industries.

    With over 15 years' industry experience, we work with candidates to match them to the right roles and equip them with the skills and knowledge needed to succeed. Our job is to exceed your expectations.

    Visit us online: offshorempa.com

  • View All JobsChronos Oil and Gas

    Chronos Oil and Gas is one of the fastest growing and best placed recruitment agencies in the sector.

    With over 300,000 candidates on our database and an international team of specialist recruiters we work with clients to staff major projects around the world.

    Register your CV at www.chronosoilandgas.com

  • View All JobsNatural Resources

    Natural Resources is a UK based recruitment company providing personnel of all disciplines and nationalities worldwide.

    We represent clients and candidates at all levels who operate globally within oil & gas, renewables, nuclear, power, mining, marine, drilling, construction and petrochemicals. Our client base includes energy and construction.

    Visit Natural Resources at natural-resources.com