Update On Mexico -- May 22, 2019

Over at "big stories": Mexico could go the way of Venezuela.

With that in mind, here's a screenshot from twitter.

This is from a long, long update on Mexico. Archived.

• leftist elected president: Mexico's energy market reform is now five years old; the new president was elected partly on a promise to dismantle that reform
• centralizing control: "a more naked grab at power"
• administrative changes: the state has first right-of-refusal for projects; not subject to market concerns
• pipeline construction: construction on at least five natural gas pipelines has been suspended due to environmental regulations and/or land-use constraints  
• processing infrastructure: so bad that Pemex declared a force majeure at one of its gas processing plants, and indications are that the wound was self-inflicted, and unlikely to be fixed
• underserviced demand: Pemex unable to meet demand, especially in the south
• LNG imports: Mexico has no existing gas storage infrastructure

When (not if) Mexico implodes, the US will look back at the current "southern surge" as a walk in the park, and a warning ignored.