North America to Drown in Oil as Mexico Ends Monopoly

MSN ^ | 12/16/13 | Joe Carroll, Bradley Olson

[Libloather]

The flood of North American crude oil is set to become a deluge as Mexico dismantles a 75-year-old barrier to foreign investment in its oil fields.

Plagued by almost a decade of slumping output that has degraded Mexico’s take from a $100-a-barrel oil market, President Enrique Pena Nieto is seeking an end to the state monopoly over one of the biggest crude resources in the Western Hemisphere. The doubling in Mexican oil output that Citigroup Inc. said may result from inviting international explorers to drill would be equivalent to adding another Nigeria to world supply, or about 2.5 million barrels a day.

[SkyDancer]

WOW - one can only hope now the same thing will happen with this supposed glut that might come.

[RobbyS]

This is not 1937. We can hope that the Mexican elites learn the right way to nationalize the industry.

[Sherman Logan]

California complained that the electric cars weren’t using enough gas and the state was loosing gas tax revenue.

For practical purposes, most road construction and maintenance is paid by gas taxes.

Wear on roads is a product of vehicle weight and miles driven. Electric cars pay no gas tax, and thus nothing towards maintenance of the road. They are freeloaders on the highways, though they cause the same wear as an gas car.

[Star Traveler]

There is lost revenue when you have more fuel efficient cars. And that is sort of a problem, because those cars will still drive on roads the same number of miles and those roads will still wear out (needing maintenance and repairs) - but less money comes in for doing that. Electric cars basically get a “free ride” - so to speak.

Perhaps he was talking about less revenues - stemming from that.

Just for an example ... let’s say that everyone was driving 15 MPG cars one year — and then next year everyone was driving 30 MPG cars. Immediately, the governments would get ONE-HALF the tax revenue if people drove the same number of miles. To get the exact same revenue that second year, the governments would have to DOUBLE the tax just to remain the same.

[DIRTYSECRET]

$2 a gallon gas? I’ll believe it when I see it.

[lacrew]

The tax is ‘per gallon’. The current ‘debate’ is over the miniscule amount of gas tax not being paid for by electric car owners.

The government solution - pay tax by the mile! And of course, they will require some sort of device to track your miles driven (....and...er...whatever else they need to ‘track’).

[MacNaughton]

4 I’m not so sure that there will be as quick of a rush down to Mexico as they expect; this feels just like the bait and switch - come develop our fields, we’ll nationalize them as soon as they are producing so we can do this again in 20 years.

I seem to remember something like that back in the 1970s when PEMEX was bragging how much $$$ it was going to make off the U.S.

[GeronL]

do they make life vests for oil floods?

[mongo141]

“I’d be willing to bet if gas prices dropped to say $1.50 a gallon the states and the feds will add enough tax to bring it back up to $3.50 a gallon.”
**********************
That stands about a 98% chance of happening, think about how many votes they could buy with the money.

[HANG THE EXPENSE]

Only a fool would invest in mexico.I believe they nationalized the oil fields before, 40s or 50s, causing lots of grief to investors back then.NO THANKS

[Paladin2]

Some states have sales tax on top of per/gal taxes.

[HANG THE EXPENSE]

late 30s

[HANG THE EXPENSE]

late 30s

[HANG THE EXPENSE]

late 30s

[SkyDancer]

I can see that. Just because the gas price comes down higher fuel efficient cars just don’t need as much therefor gas revenue will go down. Maybe that’s what I was thinking. If fewer gallons are purchased then the states loose revenue(?)

[dalereed]

There are a lot of hidden taxes on oil and the total from ground to pump is78%.

[Star Traveler]

LOL ... I think you should “read up” on gas taxes ... :-) ...

Here’s one useful article and I’m sure you can find many others that can explain what is going on with gas taxes.

http://www.pothole.info/2010/05/seven-things-you-should-know-about-gas-taxes-in-2010/

[jcon40]

“Some states have sales tax on top of per/gal taxes.”

thank you was just going to post that fact

California for example

[bigheadfred]

They prohibit foreign investment.

they are infesting millions of illegals in america and the money they send home is foreign investment

[Fzob]

I’m not so sure that there will be as quick of a rush down to Mexico as they expect; this feels just like the bait and switch - come develop our fields, we’ll nationalize them as soon as they are producing so we can do this again in 20 years.

My thoughts exactly.