U.S. case highlights Mexico’s rampant oil theft

MEXICO CITY, (Reuters) – Mexico’s state-run oil  company Pemex has an endemic problem of fuel thefts from  pipelines that was highlighted this week in a case involving  stolen oil smuggled into the United States.

U.S. customs authorities handed over $2.4 million to the  Mexican government on Tuesday that was uncovered in a joint  investigation into oil stolen in Mexico and sold north of the  border.

Tapping into state oil monopoly Pemex’s pipelines to steal  gasoline, diesel and even jet fuel has generated hundreds of  millions of dollars of profits for Mexican criminals for  years.

The lost fuel is a significant cost for Mexico, which  relies on imports for more than 40 percent of its gasoline  despite being one of the world’s largest oil producers and  exporters.

Pipelines buried beneath farms and in other rural areas are  frequently dug up by the thieves who attach valves to allow  them to drive up tanker trucks to the line and siphon off the  fuel.

For the most part, stolen fuel is sold to corrupt service  station owners and companies that operate large fleets of  vehicles in Mexico.
Pemex frequently finds the connections and seizes tanker  trucks full of fuel but arrests are uncommon and convictions  are even rarer, especially of the leaders of fuel theft rings.

The Texas case is no surprise to long-time watchers of  Mexico’s oil industry.
“It’s just business as usual for Pemex except for the fact  that it has come to light,” said Mexico oil analyst George  Baker.
“There is no corporate business unit responsible for  pipelines. It’s completely balkanized and the pipeline  integrity people are infiltrated by the traffickers,” Baker  said.

Mexico’s powerful drug gangs, who the government accuses of  participating in the theft, are believed to fuel their aircraft  with stolen jet fuel to cover up evidence of illicit flights.