Mexican Explosions and Their After Effects

Nobody was injured in the Veracruz explosions, but the Mexican economy certainly was and that hurts Mexicans. The disruption of gas and oil supplies affected thousands of businesses, with many forced to close or at least reduce — their operations. Just days ago losses were estimated at US$200 million and they must be higher now.

As a result of the explosions, 60% of Mexico’s steel production was stopped, and some automobile plants were “crippled.”

Too, this will cost PEMEX a lot of money, and the state-owned oil and gas conglomerate is already in a financial bind, and providing 40% of the country’s tax revenues.

And obviously, such attacks can scare away investors.

Even before the latest bombings the Mexican government had turned to a private U.S. security firm, SY Coleman, for help (SY Coleman does contract work for the U.S. Department of Defense and other government agencies).

After the July bombings, the Mexican government hired SY Coleman to set up surveillance for PEMEX and the CFE (a Mexican government electrical monopoly) in the state of Veracruz. This state contains many strategic energy assets, including pipelines, refineries and Mexico’s only nuclear power plant, at Laguna Verde.

SY Coleman has recruited former military pilots who also speak Spanish, and is sending them to Veracruz to set up an air surveillance center, to work with Mexican security officials, and to utilize helicopters, airplanes and unmanned aerial vehicles to keep an eye on the energy installations.

PRI (Institutional Revolutionary Party) congressman Robert Badillo, of Veracruz, has criticized the SY Coleman contract as a violation of Mexican sovereignty and an offense to the Mexican military.

Mexidata