Mexico President Andres Manuel Lopez Obrador has promised a new oil refinery and also upgrade current refineries that lacked updated parts so they could run at 100% of volume. Mexico plans to start awarding the construction of its seventh refinery as soon as March 2019 currently the nation´s refining system is operating at its lowest levels in three decades.
Mexico sales oil to the U.S Refineries and has to buy it back in the form of fuel because Mexico currently doesn’t have the refinery capacity. Lopez Obrador also said Pemex will overhaul its six refineries and bring gasoline production up to 600,000 barrels a day by mid-2020.
But Mexico Faces a lot of heat from Wall Street investors that don’t like the idea of losing a cash cow like Mexico. Even western-backed think tank (NGO) groups are against this new refinery. The Mexican Institute for Competitiveness (Imco) carried out a financial analysis of the project planned for the Gulf of Mexico coast at Dos Bocas. The results? well, as expected they were not positive. The think tank – imco.org.mx is backed in part by the U.S Government.
The Cartel’s in Mexico are also another group that is not happy with the new Mexican corruption and crime crackdown, Mexico President Andres Manuel Lopez Obrador sent in the army to protect the pipeline and has resulted in a drop of theft by 90%. That, in turn, has resulted in death threats, For the second time this year, the Santa Rosa de Lima Cartel has issued a threat to President López Obrador to halt the fight against fuel theft and crime in Guanajuato.