Peter Zeihan here on how badly Mexico has handled their oil fields and refinery plans.
Basically PEMEX hit the oil lottery with Cantarell, they never got good at exploration, and the refineries theyโve built are suitable for Persian Gulf oil, not whatโs available in the region.
There is much to be said for buying locally โฆ but not if youโre buying a problem. No ideologue of any stripe will get things like this right - it requires pragmatism that they are unable to muster.
This could be good for the U.S., if Mexico again requires our refined products, but thatโs contingent on them being ready to step into Chinaโs role when their housing market meltdown really takes off. But since weโve got nationalist loonies taking office in a week, weโll fumble this opening badly.