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Gas Shortage should be over within 48 hours


Ferret

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There has always been a reserve source and tankers waiting to unload that couldn't because storage facilities were full. The problem has been the shutdown of the pipelines to deter theft. So, although the heading of the OP is not truly correct, it was to address what everyone has been thinking of as a "gasoline shortage" because it's in short supply at most stations. There's gas but there weren't enough trucks to deliver it to where it was needed.

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OK, so do I have this right.....it's "we shut down the pipelines to deter theft thereof but we didn't actually have the logistics of delivering it by trucks in place yet. Sorry". 

Since 'theft by pipeline' has been going on for (years, decades?) we couldn't wait a couple more weeks to shut them down and insure that we had the trucks all lined up to deliver?

Now if the gov is also 'requiring them to deliver but not paying them a salary', this sounds very much like a government I know somewhere NOB.

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RickS Yes, I think you've got that about right. Planning strategy doesn't seem to be too abundant in Mexico. Small and large scale. Like when I was building my house and I dealt with ordering the materials- the guys could never seem to get it together to tell me what they were out of and would need for the next day. So at 10 AM I'd get a call that they were out of rebar, then they'd have to wait an hour til I could get it delivered. If they'd told me at the end of the workday before, it would have been there when they started work the next day. Same thing with the gas, just on a vaster scale.

There was a corner store I used to go to for my smokes. Every weekend they'd be out of my brand by Sat. afternoon. I asked why they didn't order an extra couple cartons each week, since they always ran out. I got the typical shrug.

And heaven forbid you'd do any regular maintainence on anything. Wait til it breaks, then not have it available to use until it gets fixed, if it even can be at that point.

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1 hour ago, RickS said:

OK, so do I have this right.....it's "we shut down the pipelines to deter theft thereof but we didn't actually have the logistics of delivering it by trucks in place yet. Sorry". 

Since 'theft by pipeline' has been going on for (years, decades?) we couldn't wait a couple more weeks to shut them down and insure that we had the trucks all lined up to deliver?

Exactly the questions. AMLO is dealing with cartels stealing gas like the previous govt's have been dealing with cartels selling drugs. Back azzword.

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I haven't even had a coffee yet and I'm already laughing my head off. Yeah, 'tis Mexico. Mudgirl, I think your guys knew what they needed... "an authorized break from working". 

It would have been nice to have had a plan in effect to maintain the status quo BUT a perceived shortage would seriously dent the stashed illegal cache and empty stations of any illegal gas. Yes? Then having shut off the pipelines there would be no way for illegal gas to recoup their stash... and the limited truck distribution would convey the actual amount of gas needed for an area... which would then indicate the number of trucks and frequency needed for fill ups. Azz backwards? Or smart like streetcar?

Crap, I need a coffee.

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18 minutes ago, Ferret said:

I haven't even had a coffee yet and I'm already laughing my head off. Yeah, 'tis Mexico. Mudgirl, I think your guys knew what they needed... "an authorized break from working". 

It would have been nice to have had a plan in effect to maintain the status quo BUT a perceived shortage would seriously dent the stashed illegal cache and empty stations of any illegal gas. Yes? Then having shut off the pipelines there would be no way for illegal gas to recoup their stash... and the limited truck distribution would convey the actual amount of gas needed for an area... which would then indicate the number of trucks and frequency needed for fill ups. Azz backwards? Or smart like streetcar?

Crap, I need a coffee.

I thought the same thing. The gas stations that are buying illegal gas were also buying from Pemex. The Pemex ordered amount of gas for all gas stations is in the Pemex database and could also be in the SAT database as well. If these gas stations are ordering more gas from Pemex once distribution returns to near normal with the pipelines closed the federal investigators will then know which gas stations were buying illegal gas and how much and where.

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and those gas stations will have to pay tax they were not paying before. Since we know Pemex was reporting to Hacienda the quantity the gas station were buying , they should collect a whole lot more taxes..from the station who were buying stolen gas. 

I do not know if the law passed but Morena introduced a law to take away the franchise for 15 years from the owners who will go back to buying stolen gas. Now that they will have the list of all the people who were cheating , it should be pretty easy to do,

I would think the first offense will be forgiven but the second one will not.. Hopefully that will work.. If AMLO is successful at cutting that way back he may have found money to improve healthcare..

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Well now I am confused because I was under the impression that Mexico was an oil producer, but all the oil tankers stranded in the various ports are bringing oil from other countries....

Then I am starting to have some concerns with AMLO because I think he said that Maduro (spelling) the Venezuelan president won the election fare and square. 

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Mexico has limited refining capabilities and much of it is sent to the U.S. to be refined into the various products... and then is sent back... as gasoline etc. It is a problem that should be addressed in both Canada and Mexico.

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They already have. Neither Canada nor Mexico liked it.

Here's more...

https://www.reuters.com/article/us-mexico-refinery/mexicos-president-elect-sets-out-plan-for-new-8-billion-oil-refinery-idUSKCN1LK2V0

On the other hand, gasoline use and oil refinement is not good for the planet. In a land of nearly perpetual sunshine, I would like to see AMLO go in another direction. How about acres and acres of solar panels in the barren lands. How about electric cars. How about stop sucking oil out of the ground before the planet implodes. Just thoughts.

 

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1 hour ago, HoneyBee said:

Thanks for the clarification. Hope the US does not hold Canada and Mexico hostage....

Pemex owns a half interest in the Deer Park oil refinery in Texas. One of the largest. Pemex has a pipeline in the US as far as from Texas to Arizona.

http://abarrelfull.wikidot.com/pemex-refineries

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15 hours ago, Ferret said:

This information was originally posted by Trailrunner on TOB less than an hour ago.

https://mexiconewsdaily.com/news/3500-tanker-trucks-to-deliver-gasoline/

 

The fuel crisis is somewhat contrived as imports of gasoline from the USA are down 45% in Jan. Compared to last year and light crud to mix with Mexico's heavy crude to allow it to be refined is down 30%. So Pemex jist isn't ordering as much as they need. https://mexiconewsdaily.com/news/gasoline-imports-significantly-reduced/

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12 hours ago, mudgirl said:

RickS Yes, I think you've got that about right. Planning strategy doesn't seem to be too abundant in Mexico. Small and large scale. Like when I was building my house and I dealt with ordering the materials- the guys could never seem to get it together to tell me what they were out of and would need for the next day. So at 10 AM I'd get a call that they were out of rebar, then they'd have to wait an hour til I could get it delivered. If they'd told me at the end of the workday before, it would have been there when they started work the next day. Same thing with the gas, just on a vaster scale.

There was a corner store I used to go to for my smokes. Every weekend they'd be out of my brand by Sat. afternoon. I asked why they didn't order an extra couple cartons each week, since they always ran out. I got the typical shrug.

And heaven forbid you'd do any regular maintainence on anything. Wait til it breaks, then not have it available to use until it gets fixed, if it even can be at that point.

IT has been known for years that delivering gasoline through buried pipes that are not maintained is very dangerous. In 1992 leaky pipelines in Guadalajara destroyed 5 miles of city streets and many buildings. It is believed that around 1000 people perished in this disaster. Time to decommission these rusty, leaky, theft prone pipelines. https://en.wikipedia.org/wiki/1992_Guadalajara_explosions

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2 hours ago, HoneyBee said:

Well now I am confused because I was under the impression that Mexico was an oil producer, but all the oil tankers stranded in the various ports are bringing oil from other countries....

Then I am starting to have some concerns with AMLO because I think he said that Maduro (spelling) the Venezuelan president won the election fare and square. 

Mexico's crude is heavy sour crude that must be mixed with light sweet import crude crude from the USA before the refiners in Mexico can refine it.  Mexico has cut the imported Light crude volume the last few month. 

https://mexiconewsdaily.com/news/gasoline-imports-significantly-reduced/

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Great links Geezer. Thanks.

I'm going to play a wait and see attitude because I can't help but wonder how you figure out how much is stolen if AMLO's steps hadn't been taken. There have to be starting parameters for correct evaluations and deductions to be calculated. Vamos a ver.

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24 minutes ago, geeser said:

Mexico's crude is heavy sour crude that must be mixed with light sweet import crude crude from the USA before the refiners in Mexico can refine it.  Mexico has cut the imported Light crude volume the last few month. 

https://mexiconewsdaily.com/news/gasoline-imports-significantly-reduced/

That is only a half truth. Mexico also has light crude oil and refines it in Mexico to produce gasoline. The reason Pemex is importing less is because they don't need as much now.

 

https://www.ogj.com/articles/print/volume-98/issue-20/processing/guide-to-world-crudes.html

Your link has nothing to do with your post. Here is that link in part:

"As fuel shortage continues, data reveals gasoline imports significantly reduced

 

Mexico imported 45% less gasoline from the US in the first 10 days of January compared to last year
Saturday, January 12, 2019

Mexico has significantly reduced gasoline imports from the United States since Andrés Manuel López Obrador was sworn in as president on December 1, according to a United States research firm.

The period in which they were cut back partially coincides with the current widespread fuel shortage that the government has explained is the result of López Obrador’s decision to close several major petroleum pipelines as part of the strategy to combat fuel theft.

A report published yesterday by The Wall Street Journal (WSJ) cited data from Houston and New York-based ClipperData which shows that under the new government, seaborne gasoline imports from the United States’ Gulf Coast have averaged around 350,000 barrels a day.

In an earlier tweet, he wrote: “Mexico’s gasoline supply is paralyzed by closed fuel pipelines, but there are other factors: Pemex refining and downstream infrastructure are a mess, AMLO has stopped importing U.S. light crude, and January daily import volumes are down 45% from 2018.”"

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