Mexico's Energy Showdown with the US: Is it Coincidence that 3 Oil Refinery Fires Happened on the Same Day?
The recent news of three oil refinery fires at different facilities in Mexico and the United States on the same day has raised concerns about the coincidence of the events. These incidents occurred as we had previously warned that the US and Canada were going to put pressure on Mexico to change its energy policy.
According to Reuters, state-owned Mexican oil company Pemex operated the facilities where the fires broke out, leaving five people missing and eight others injured as of Thursday evening. While it is still unclear what caused the fires, it is worrying to note that these incidents happened at a time when Mexico and the US are at loggerheads over energy policy.
Background
The conflict between Mexico and the US over energy policy dates back to July 2022 when Mexican President Andres Manuel Lopez-Obrador (AMLO) visited the White House. During the visit, AMLO publicly declared that he would not join the US and Canada in shutting down oil use and refining capacity for low-cost gasoline. This stance puts AMLO on the wrong side of the Biden administration's energy policy.
The US's energy policy is driven by climate change and energy ideologues who are pushing to raise energy prices, specifically oil, and gasoline, to make green new deal energy programs financially viable. To achieve this goal, the US administration is draining the strategic petroleum reserve, limiting current oil exploration, and blocking the expansion of oil refineries in the US by canceling permits.
Mexico, however, is not willing to play along with this game. AMLO sees the Biden administration's strategy to raise energy prices as a problem and wants to keep gasoline prices low. To achieve this, Mexico is increasing oil refinery development and continuing oil production, which puts it at odds with the US and Canada.
The Stakes are High
The energy showdown between Mexico and the US is a high-stakes game. The US and Canada are putting every possible political pressure point on Mexico to change its energy policy, and the situation could escalate quickly. We previously warned that nothing would be off the table of potential, and the recent fires at Pemex facilities have only heightened concerns.
Conclusion
While the cause of the fires is still unknown, it is worrying to note that these incidents happened at a time of heightened tension between Mexico and the US over energy policy. The stakes are high, and the conflict could escalate quickly. As we continue to monitor the situation, it is crucial to keep an eye on how the US and Canada use political pressure to force Mexico to change its energy policy.
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