STS

Mexico: Running Out of Oil and Options

Interesting perspective from an outsider. Although the general terms might be correct, it's by far not the whole.
Oil production has been steadily declining, due to antiquate equipment, which is a result of a) nearly 90% of profits have to be payed in taxes to the federal government and b) corrupt government officials. This is now being adress by the current Calderon Administration, however since Mexico is a democartic country, it had to battle fierce discusions and proposal to the reviteliasation and restructuring of the OIL industry. A consensus has been found and detailes are being worked out, which will take a few more months till the process starts. Having said that, spanish Repsol Oil conglomarate is already deeply involved and you might be surprised to know that China is already on the ground and many PRC nationals are working in some sectors of the industry (as outsourced manpower resources).

And don't forget gasoline is heavy subsidiesed considering that the mayority of gas is refined and processed in the US and India.

As for the drug war, 40bn USD is about the right figure. The 40bn USD are generate from sales in the US. This is a huge industry and can only work with corrupted US politicans from congress to municiplities, not to mention police and certainly the US banking systems.
So do not worry anymore...it has spread over the boarder along time ago. Where do you think the sofisticated drug armies get their hard and software from? Only the US sometimes with a detour via Iraq. weapons are purchased in US and shipped to Mexico.

as it looks like the root cause of the drug violence is not Mexico, but the United States of America.

Mexico's biggest vunerability is it's heavy dependency on the US. 75% of all it's exports go to USA. This is about to change Asia was neglected by mexcian industries and government. I have seen first hand agri product exporters, which only supplied US clients, which again re-exported the Mexican product for a multiple to Asia clients, cut the intermediatery and go straight to China, South East Asia and middel east.

Kidnapping is a serious problem and so is corruption and poverty. Sean Maher is partially right. Columbians drug criminals have relocated to Northern Mexico and caused territorial disputs with mexican cartels.

The main crime activity zone is 150 miles from the north and south the boarder. The terrible killing on the south side is a result of the current Calderon government to effort to stop the violence. It will take time and lot's of blood. It needs guts and determination to change. Something that is absolutly wanting in the US.