So you want to make energy more expensive across the board. Let's review what the effects of that would be. First, you'd be passing on higher electricity and transportation bills onto the average American consumer, thus reducing demand. Then you would be making factory production of even the most basic products more expensive in the US, both driving jobs out of this country and reducing supply. Essentially, you want to completely squeeze out our economy. Luckily the rest of the American people do not share your radicalism.
Do YOU have scientific proof that its feasible? Do YOU have scientific proof that we could make a full transition away from fossil fuels? No... you don't.
that is bull****, ethanol nor bio diesel have proven to be sustainable and are incredibly expensive. Wind energy is ok but nothing to jump up and down about, same with solar power. None of these technologies can replace fossil fuels without driving the economy out of reach even for the middle class.
As far as people go: I'm currently in Mexico and no one here is happy with this. As it is, companies already get away with some of the biggest labor abuses here. With the new investors that will come, the prediction by locals is that the government will be used as a punishing force to anyone who dares oppose oil companies. The comparisons to Nigeria aren't exactly helping. Nigeria is rife with human rights abuses, destruction of habitat and labor abuses. Most Mexicans are already predicting it will also happen here. The next elections will be very interesting to watch. It's already a given that the PRI will lose power federally. The oil producing states of Chiapas, Veracruz and Tabasco are already looking at serious demonstrations. People are well aware of the way in which the government has abused its power to enforce the wishes of corporations.
The violence: The Gulf of Mexico is a place of interest for most as it is currently controlled by the Gulf Cartel and Zetas. When/if Mexico succeeds in luring interests, most Atlantic Ocean states will likely see an increase in violence and even the possibility of an upsurge in kidnappings. It's already happening with the mining industry. Cartels have taken over some mines as well as kidnapped important mining figures in the states of Guanajuato, Zacatecas & San Luis Potosi.
The economy: It is a given that in Mexico, wealth does not trickle down. Governors in the state that I'm in have a history of 1) Using violence/kidnappings to establish their position 2) Steal outrageous sums of money/benefits/licenses from coffers and 3) leave the state. So people are more than convinced that once oil companies are allowed to invest in Mexican oil fields, governors will charge a "fee" for them to operate, siphon the money from whatever levy/taxes are paid by oil companies and then leave. Essentially, for most this means that corruption in the state will actually grow.
My opinion: The only people who seem to be celebrating are those who are those outside of Mexico. Few are actually aware the level of corruption that exists within the country and future investors should be ready to pay out a lot of cash to 1) local governors, 2) cartels and 3) federal employees before they even think about investing here. They will also have to think twice about the violence that will follow their investment. Mexico is not ready for companies to invest in it - not by a long shot.
Legalizing drugs in Mexico will only make the kingpins more wealthy and connect them even more to the state, making Mexico a narco state. They don't make their money by selling to Mexican users but by selling to foreign users, they EXPORT. Legalizing drugs in Mexico will only strengthen the cartels.
then how does one stop the cartels smuggling drugs? a blockade?
not much but that will still be far more than if all profits go overseas no?
I don't think any one entity would get all the profits, but each would get their share of the profits from their stage of production. No reason anyone in Mexico should get the profits of gas sold at some filling station.
Because American companies dominate the industry and it is in their back yard. Only ones that might be able to persuade the Mexicans elsewhere is China but I doubt the US would allow that.
Well HOT Dog!
This is all kinds of good news, for us and for Mexico. eace
The following is not against cpwill, but against the article he linked to.
Whoever wrote the OP article does not seem to know what they are talking about in terms of what this would mean to America and world oil prices.
This article suggests that up to an addition 2.5 million barrels per day could be added to world supply and that this would 'contribute to a glut'.
The current world oil production is (according to Wikipedia) over 84,000,000 million barrels a day.
2.5 million is about 3% of that.
So by adding only 3% more to world oil production! that will single-handedly cause a 'glut'?
I highly doubt that.
After Saddam was overthrown, Iraqi oil production plummeted down to about 1.3 million barrels per day. Today it is over 3.4 million barrels per day, which is an increase of 2.1 million (not much less then the predicted Mexican increase). Did that cause a glut? Nope.
Iraq Crude Oil Production by Year (Thousand Barrels per Day)
List of countries by oil production - Wikipedia, the free encyclopedia
List of countries by oil consumption - Wikipedia, the free encyclopedia
Like most economic reporters, they are (IMO) prone to exaggeration.
I believe that the notion that adding only 3% to world oil production will cause a 'glut' is nonsense.
Will it help - sure.
But not to remotely the extent this reporter suggests by stating 'North America to drown in oil.'
Perhaps an entity such as Statoil or Petrobras would be one of the players.
I didn't see anywhere in the article that said that the US had a veto over who would be eligible to participate.
Horrible news. More massive profits for fat American companies and none for the average Mexican.
Oh you mean state run oil companies?Doubt it.
Seriously.. do you really expect the US to allow China to have any access anywhere near US borders? Plus at the end of the day, Mexico wont want to piss off the US.. they share a border after all.
What about the average American? Selfishly speaking, I think this should be good news.
Corruption is corruption. The only difference is in the recipients. How does this affect the average Mexican even, let alone American?
Too late, they already own a portion of Canada's resources.
No....
What will the economic effects of climate change be? The estimates put it in many trillions but its very hard to quantify. But you guys don't believe in climate change so its not a problem, right?
All you needed to say. You have NO proof that an economy can transition to 100% alternative energy sources.
It's your job to quantify, or at the very least show that the costs are greater then collapsing consumer demand and our industrial sector. It's not that I don't believe in climate change, I do. But if the "cure" causes more misery then the disease, what does that say about the doctor?
Oh its my job huh? I'm the U.S. fossil fuel to alternative energy budget czar now? I haven't researched this extensively but the estimates of the damage of climate change are in the trillions... Can you possibly think that is LESS than transitioning away from fossil fuels? Come on now you're just being silly.
Just wait till the Chinese show up.As far as people go: I'm currently in Mexico and no one here is happy with this. As it is, companies already get away with some of the biggest labor abuses here. With the new investors that will come, the prediction by locals is that the government will be used as a punishing force to anyone who dares oppose oil companies. The comparisons to Nigeria aren't exactly helping. Nigeria is rife with human rights abuses, destruction of habitat and labor abuses. Most Mexicans are already predicting it will also happen here. The next elections will be very interesting to watch. It's already a given that the PRI will lose power federally. The oil producing states of Chiapas, Veracruz and Tabasco are already looking at serious demonstrations. People are well aware of the way in which the government has abused its power to enforce the wishes of corporations.
The violence: The Gulf of Mexico is a place of interest for most as it is currently controlled by the Gulf Cartel and Zetas. When/if Mexico succeeds in luring interests, most Atlantic Ocean states will likely see an increase in violence and even the possibility of an upsurge in kidnappings. It's already happening with the mining industry. Cartels have taken over some mines as well as kidnapped important mining figures in the states of Guanajuato, Zacatecas & San Luis Potosi.
The economy: It is a given that in Mexico, wealth does not trickle down. Governors in the state that I'm in have a history of 1) Using violence/kidnappings to establish their position 2) Steal outrageous sums of money/benefits/licenses from coffers and 3) leave the state. So people are more than convinced that once oil companies are allowed to invest in Mexican oil fields, governors will charge a "fee" for them to operate, siphon the money from whatever levy/taxes are paid by oil companies and then leave. Essentially, for most this means that corruption in the state will actually grow.
My opinion: The only people who seem to be celebrating are those who are those outside of Mexico. Few are actually aware the level of corruption that exists within the country and future investors should be ready to pay out a lot of cash to 1) local governors, 2) cartels and 3) federal employees before they even think about investing here. They will also have to think twice about the violence that will follow their investment. Mexico is not ready for companies to invest in it - not by a long shot.
Let us drown in oil and our children drown in its consequences!
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