ARTICLE: "Pipeline Sabotage Fuels Anxiety In Mexican Business, Politics," by John Lyons, Wall Street Journal, 13 July 2007, p. A4.
Right out of Robb's book.
But what's interesting here is that the state-run oil company is hollowing itself out of its own volition.
No matter who is behind the attacks, the perpetrators targeted a key pressure point in the Mexican economy. Despite the country's vast energy potential, the state oil company can't meet rising demand for natural gas, forcing the country to import more expensive gas from the U.S.--a situation that is fast becoming an obstacle to foreign investment.
Pemex refuses FDI (written into the Mexican constitution, I believe), so it's vastly underperforming as a matter of national pride. But now comes the squeeze so easily effected.
So one of two things happens: Mexico goes further downhill energy-wise is increasingly vulnerable to such tactics or it grows up on the question of FDI.
Think Putin's so unreasonable now?
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