Corrupt Oil Cartels Abstract

Petroleum, some people call it, Black Gold. Oil runs our daily lives, we made it habit to use it every single day, without oil, we would go school or work in a car, we would have electricity in order to our alarm clock to sound in the morning or to take a nice warm shower, or even have light to see. The U.S. consumes one fourth of all oil consumed in the world, with more than 20,000,000 bbl/day (barrels per day)most of the U.S. oil comes from exports, one of them being PEMEX, Mexico's state owned oil company, being the 6th largest in the world, which 82% of their exports is exported to the U.S.

In the early 1930s people were striking foreign owned oil companies in Mexico, for an increase in pay and social service. In the result of that in1938 President Lazaro Cardenas, nationalized Mexican oil, every single drop of crude oil inside the country was Federal property, even to this date, creating one oil company and making it the 5^th largest oil exporter company in the world. Many people want to privatize Pemex, like Carlos Slim, George Bush, Andres Manuel Lopez Obrador, but the president always denied it, is not an option to privatized Pemex, and it will not benefit the country.

Since Pemex is run by the government, and Mexico being a corrupted country, Pemex officials steal from the company which means that they are stealing from the country. Billions of dollars are stolen from Pemex, and Mexican cartels steal directly from Pemex’s pipelines, there is a estimated that more than 350 million of dollars are stolen each year from Mexican cartels. If they are stealing from PEMEX means that they are stealing from Mexico, so not only the company is losing money but also the country. 40% of Mexico's income come from PEMEX.

Most of the oil from Mexico was exported, instead of using it in the country, and since oil was becoming a need for the country, Mexico nationalized their oil, in order to control their oil and have more oil, but now there are stealing oil inside the company, billions of dollars are stolen from Pemex by Pemex officials.