GillBilly Chronicles: Fuel Rationing in Ensenada!

PEMEX is the world's fifth-largest oil company and Mexico's state oil monopoly, engaged in both upstream and downstream activities. The company accounts for approximately 30% of the Mexican government's revenues. Its vast oil and gas reserves include proven reserves of 34 billion barrels of oil equivalent. It is protected from competition in Mexico, where it enjoys a legal monopoly on the exploration, processing and sale of petroleum. And its privileged status in national mythology affords it a certain immunity from criticism. PEMEX is also in deep trouble. It's heavily-indebted and unable to provide the capital necessary to locate and exploit Mexico's oil deposits. In 2004, then Energy Minister Felipe Calderon announced that, without more investment, Mexico's known reserves could be depleted within 13 years. This wasn't the future envisioned by President Lazaro Cardenas, who expelled the foreign oil companies and founded PEMEX in 1938, to give Mexico's oil to "the people". Annual production has dropped each year since 2004. Furthermore, it has been reported the 2005-2006 daily oil production was down by approximately 500,000 barrels a day (a large proportion of the country's 4.5 million barrels) on the previous year.

The grades of PEMEX gasoline are "Magna" (Regular Unleaded 87 octane - green pump handle) and "Premium" (92 octane - red pump handle). Previously, PEMEX offered a leaded gasoline called "Nova," but this has been discontinued for environmental reasons (Nova gasoline, like many other leaded gasolines, have been discontinued due to stringent health regulations). Diesel fuel is readily available due to the large number of trucks on the highway - however, don't confuse the green Magna gasoline pump with a diesel pump as might be the case in the U.S.. The diesel pumps are often purple or red, and are usually sited on a separate island - the marking is "Diesel" or "Diesel Sin."

In the June 13th blog on this site an article described the huge run on fuel here at the Coral Marina in Ensenada, Baja California, Mexico by luxury yachts and north of the border sportfishing craft. This has concerned Baja residents as there is a fear that this will force the price of fuel up locally, to the near $5 per gallon for diesel north of the border. Diesel fuel here is near $2 a gallon and many locals wondered how this glut of traffic trending south to fuel would affect the cost and supply of fuel here in Mexico.

Now we know the results of this recent run on fuel, the PEMEX oil company is going to ration fuel to the Coral Marina PEMEX fuel dock as of yesterday. The fuel dock had been pumping an entire PEMEX tanker truck per day, some 5000 gallons per day! As of now, the fuel supply will be rationed and quoting Fito Espinoza, the dock master here at the Coral Marina, “the fuel will be conserved for those in the marina’s use as top priority.” Already the activity at the fuel dock has lessened and the affects of this fuel rationing program are already being felt. This news will quickly filter through the yachting and commercial fishing community and soon the stream of yachts will abate visiting the Coral Marina only for fuel and not for the pleasure of enjoying the Coral Hotel and Marina’s many amenities.

Below: the luxury yacht Shana visited the Coral Marina PEMEX fuel dock for an all day process of taking on a huge quantity of diesel fuel. This entailed a wait for another tanker truck to deliver more fuel to complete the transaction. Yachts like this will now find it more difficult to find the fuel they desire at low local prices.

"Rivers and the inhabitants of the watery elements are made for wise men to contemplate and for fools to pass by without consideration."
Izaac Walton