In early August, a joint US-Mexican investigation into the widespread oil theft and trafficking industry in Mexico uncovered the illegal sale and smuggling of more than $2 million in petroleum from Mexico's state-owned oil monopoly Pemex to companies in the US. According to the US Energy Information Administration, Mexico is the world's sixth largest oil exporter, creating some 3.5 million barrels per day. Pemex, however, loses $1 billion each year to theft of its products, mostly in the form of gasoline, diesel and even jet airplane fuel that is illegally tapped from its extensive and poorly secured pipeline network. In terms of risk management, the first step to addressing this situation is securing Pemex's pipelines, mainly by installing pressure gauges throughout the system that can detect when flow drops in a particular section. This would indicate an illegal tapping that could then be intercepted by law enforcement agents. It will take Pemex years to set up monitoring across the entire pipeline, however.
Black Gold, Black Market Bill Cottin Risk Management; Oct 2009; 56, 8; Docstoc pg. 12 Reproduced with permission of the copyright owner. Furt
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