Suicidal Mexico

National

Arabia Saudi should maintain inferior prices at the costs of production of foreign fracking

Suicidal Mexico

By: Carlos Damian                                                                          December 24, 2014

The world recession is accompanied from a tendency to the drop in the prices of the basic ones

Mexico. -    In the war of prices in the world with the OPEC (for their initials in Spanish) will continue and this situation will become hard for the intentions of the producing ones of adjusting the process of the deep restructuring of the global economy. In this process the producers will leave on the side of the losers and of winners visualizing that in this world crisis the prices of the basic products will go to the drop. The petroleum will collapse from 137 to 35 dollars for barrel between June and December of 2008, and the price it averaged 61 dollars approximately for barrel in 2009.  The tendency to the rise could recover due to the ability of the producers to administer the law of the offer and the demand, an approximate price of 107 dollars was reached by barrel between 2011 and 2013, and in this context of volatility what marked the prices imposed by the cartel was of producing of petroleum. At the moment the OPEC injects 30 millions of barrel of raw to the world, almost the equivalent one to the third part of the world consumption, with the support of the minister of Energy from Arabia Saudi that it declared that its country won't clip the current production of petroleum. Although it is recognized that the market is saturated therefore it has fallen the price to 115 dollars the barrel in June of 2014 to about 62 dollars. For what one could speak of a war of prices with The States. In this hypothesis that we gave for certain the main enemy they are these two countries that have gone aboard with the method of the fracking and directional perforation. In this war without end Riyadh has gone aboard to maintain the prices the time that is necessary and enough to break them the neck to the industry of fracture hydraulics of America of the North. In this sense the Cartel of producers should maintain inferior prices at the level of production cost in the American oil fields to thunder to this industry not making it profitable generating that the prices are bigger to the extraction cost and commercialization.   Prices’ war  When being successful their financial maneuver the price will arrive to 60 dollars/barrel and around 40 percent of the production carried out by means of fracking that it will make that the unitary production costs in the American industry will be a failure for the production of extraction of petroleum and production of gas, that that finally would have that the extraction costs are bigger to the sale price. In America the big one producing of petroleum by means of fracking is the complex of Bakken in Dakota of the North and it produced 300 thousand daily barrels, but the unitary costs of production surpass 60 dollars/barrel. The OPEC knows it and it tries to take it out of the play. In this war of prices Arabia Saudi has in its hands two factors: it has deep reservations that support the capacity to reduce earnings, and it has structures of costs that allow depressing the prices without arriving to the losses. Arabian Light oil reservations have superior reservations to the 900 thousand million dollars and their production cost is inferior to the West Texas and Brent International, for what the presage for 2015 will stay in the 55 or 60 dollars/barrel.     In this on the way to breaking the American production of fracking goes for good road and it is reflected in the number of applications to open new wells falling to 40%. For what is expected that when getting in debt these producers by means of fracking it will weigh them the changes in the monetary politics for 2015, and the industry of the fracking that so much the Mexican government has put all the eggs in a basket his project neoliberal-itemita, and the purpose of poisoning to the town of Mexico goes to the failure.  Obey promotes the war of prices  The fracking is a marvel in Barack Obama's warlike optics that is using it to break in to Vladimir Putin, but in its country he has a strong contrary ally that they are the voters of the Democratic Party in The States. Hillary Clinton's soft critic, and the governor from New York, Andrew Cuomo, with its opposition has base in a program denominated “risks to the health". The cancerigenic fracking is the American president's ally to inflate the financial bubble of the shale petroleum/gas, and that it is using for catalyzer the financial war against the powerful Russian bear.  In this sense the supposed presidential candidate Hillary has been delimited of the energy frenzy of Obama is had by the dangerous one toxic cancerigenic of the American industry, Although it has been recognized the high environmental costs for the American town, as it has demonstrated it the New York State when prohibiting it in its state and to protect the citizens that have carried out a powerful work environmental activist. Contrary to the democrats the republican party is friendly of the hydrocarbons and the topic of the fracking will probably figure in the presidencies debates for 2016. Perhaps is a dangerous environmental topic for the mercantilist and lacking republican party of environmental receipts of sanity and hygiene for the American town.       The commissioner of health of the New York State, Howard Zucker, speaks from “significant risks to the public health", amen of “their potential risks they are immense. In fact, they are not known fully", and “they could not be made the luxury of making such an error"; in their report that he rushed to the Yorker community and he obtained an overwhelming one, “No!” To the fracking.  In The States one has a civic rebelliousness against the technique of the fracking that mediatic way  has been denied by the Israeli-Anglo-Saxon multimedia lubricated by the world oil interests that have built a well-known religion as, “energy revolution of the XXI century" that support to the toxic fracking.  This educated and conscious American revolution is opposed to Wall Street - Texas financial oligopoly that foments to the cancergenic one by means of the transnational ones that it controls the financial monopoly Black Rock Co, and of the paid international multimedia. Although this civic revolution has found echo in the other states of the Union for what an increase is expected in the commercial publicity and political propaganda with a view to the presidential election of 2016.    In this context of environmental protection 20 states are had that are opposed to the frantic fracking: three states, Louisiana, Mississippi and Alabama; with other three border neighbors from Mexico, California, New Mexico, and Texas lacking of water and that they continue their diabolical project of continuing contaminating to the Gulf of Mexico by means of the dangerous oil triad: BP/Halliburton/Schlumberger who whip the governor from New York to respect the civic decision. However this civic rejection to the cancerigenic one is the second rejection, since the first one was of the Denton City, Texas.  Alfredo Jalife-Rahme, author of the book “Death of Pemex and suicide in Mexico", it belonged one from the pioneers when putting in evidence the toxicity of the fracking. If the transnational ones clip their expenses and wells for 2015, the same thing will happen to the unsuccessful so much neoliberal Mexico in their depths of the Gulf of Mexico that it filled with petroleum the American reservoir. In the border Nuevo Leon State, Monterrey City that lacks water, some environmentalists criticized the project Monterrey IV that Grupo Higa has impelled for 3 million 133 thousand 334 dollars and that it seeks to deviate the waters of the Panuco river, Veracruz, and all this without caring them the environmental and agricultural damage to San Luis Potosi, Veracruz and Tamaulipas States. To all of them this where it is “the energy integration of North America", if Mexico with its cheerful bills to fill from petroleum to the neighbor of the north. (La Jornada, politica, p.p.8-24, December 24, 2014).