Mexico -- Commerce; Mexico -- Economic conditions; Mexico -- Politics and government -- 1910-1946
The ravaging of the oil wells is full of picturesque and terrible
incident, like the railways. The most striking and costly was the
outrage perpetuated by General Candido Aguilar, son-in-law of Carranza.
On December 13, 1913, Aguilar demanded, from the Eagle Oil Company
(British) tribute to the sum of $10,000. This was not forthcoming
so Aguilar proceeded to carry out his threat of “shutting in” the
great “El Portrero” well, one of the most famous in Mexican oil
history, which had been a steady producer, for two and a half years,
of 30,000 barrels per day. He succeeded in capping it, and before the
casing was finally blown out, the oil had broken through the ground
in dozens of places, including the bed of a neighboring river. The
whole countryside was in imminent danger of a terrible holocaust if
the oil on the river flowed away and ignited, as it surely would, but
by superhuman efforts this danger was averted. But all other attempts
to save the oil and repair the damage were almost fruitless, and for
months the seepage went on, until at last the well was reduced to
salt water and $20,000,000 worth of oil had been lost. This loss is
technically British, although it is probable that the bill for damages
will fall upon the United States, for it was undoubtedly through the
instrumentality of our State Department and its emphasis of the Monroe
Doctrine that Great Britain was restrained from taking action.
Another item to be noted is the great Carranza tax system which
continued in full force into the era of Obregon and costs the oil
companies some $4,000,000 per month. Part of this may be recognized in
time as legitimate, but it violates the letter of the franchises of
most of the companies. To this bill of claims will also be added the
losses incident to carrying out the orders of our Department of State
for all Americans to withdraw from Mexico on two occasions. Each time
about one month’s production was lost.
I have noted above the far-reaching possibilities of destruction to oil
properties entailed in the “nationalization” plans. While these are
in abeyance pending “investigation and legislation” the oil companies
have other drains on their resources, such as government levies for
dredging the river at Tampico (while the companies’ own dredges do the
work), the requirement of special licenses to drill each well, and the
virtual curtailment of all development work outside the Tampico-Tuxpam
district. All add to the total loot of the revolutionists, and continue
the threat against foreign business development throughout all Mexico.
Public-domain text, read in full here on John Shaqi.
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