Petroleos Mexicanos (Pemex), the giant, state-owned petroleum company, is a symbol of national pride with revenues of over $100 billion in 2008. However, it is cash poor because most of its revenue goes to the government, covering 40% of the national budget. Pemex is $40 billion in debt and its maintenance budget is insufficient to keep its old infrastructure operating safely. About a third of Pemex’s 50,000 km of pipeline is over 30 years old and susceptible to failure.
Environmentalists love to hate Pemex because it has inflicted enormous environmental damage. The June 1979 blowout at the Ixtoc-I drilling rig in the Bay of Campeche resulted in the world’s second largest ever unintentional oil spill: over 450,000 tons, surpassed only by BP’s Deepwater Horizon, but more than ten times the size of the 1989 Exxon Valdez disaster. In November 1984 a series of explosions at a Pemex storage facility in San Juan Ixhuatepec in northern Mexico City started major fires killing about 500 people.
A massive gasoline leak into Guadalajara’s sewers in 1992 resulted in a series of explosions that resulted in over 200 deaths. In recent years numerous smaller, but still fatal, explosions and pipeline failures flooding rivers with oil have brought new attention to Pemex’s environmental damage and failing infrastructure.
It has long been recognized that environmental damage is particularly severe near the conglomeration of Pemex facilities in southern Veracruz near the mouth of the Coatzacoalcos River. The river suffers from chronic heavy petroleum pollution, receiving massive doses periodically when pipelines break. Possibly the only beneficial outcome of the decades of widespread damage caused by Pemex in its principal areas of operation in Veracruz, Tabasco and Campeche was that it prompted the publication in 1983 of Cómo destruir el paraíso (How to destroy Paradise), a book which gave an immense boost to Mexico’s then fledgling environmental movement.
Federal environmental agencies have had only limited success in forcing Pemex to take corrective actions. Pemex recognizes the problems and applies each year for more maintenance funds from the government. The government, however, sets a higher priority on funding exploration since Mexico’s oil reserves are running out. Pemex is fundamental to the Mexican economy but needs investment in maintenance and must become more accountable for its environmental impacts.
Mexico’s environmental issues are analyzed in many chapters of Geo-Mexico: the geography and dynamics of modern Mexico, including chapter 30. Explore the book using Amazon.com’s Look Inside feature and buy your copy today!