I have written about this horrendous criminal enterprise a couple of times in the past. Apparently, it is still proliferating in different forms, and I think enforcement efforts should be stepped up. It is disheartening and enraging to know this is happening on a large scale in the U.S. To hell with the cartels!
The news story, reported in
the Houston Chronicle by Rachel Nostrant, notes that fuel smuggling has likely
overtaken drug smuggling as the Mexican cartels’ most profitable endeavor,
according to Texas Dept. of Public Safety officials as they addressed a state
Senate committee.
"Fuel trafficking is a threat that is operating in
plain sight," Col. Freeman Martin, the department's director, told the
state Senate Select Committee on Homeland and Border Security. "They're
loading fuel trucks …. or any container you can think of, and hauling it south."
“Fuel smuggling or trafficking, the illegal transfer or
alteration of fuel across borders to avoid taxes and reap illicit profits, is a
growing concern for Texas officials and the state's oil and gas industry.”
"This is just as complex, just as dangerous, just
as high-revenue for the cartels as the drug trafficking and human trafficking
has historically been," said Sen. Phil King, a Republican from
Weatherford, a city outside of Fort Worth.”
According to a Microsoft
Copilot search, the annual revenue of a Permian Basin well is about $5 million
before taxes. If we take the median of the $12-21 billion estimate of cartel
fuel smuggling profit, or $16.5 billion, we can estimate that the annual profit
is equivalent to the annual revenue of 3300 Permian wells! That sounds like
quite a lot, but it checks out with a simple division of 5 million into 16.5
billion. In 2023, there were 5822 Permian wells drilled. Could one consider the
cartels far more profitable than any single driller in the basin? It would seem
so. Thus, there is quite a lot of criminal activity going on that needs to be
addressed. We should all be outraged. Perhaps local, state, and federal
governments should do more to address this issue since it does not seem to have
improved much over the last few years. Some of the oil and oil products are
simply stolen. It is also blended to make it more profitable and likely cheats
the buyers and could damage equipment. Thus, we see lower-quality fuel sold at
much higher prices, basically a scam. Theft of oil products and oilfield
equipment is also a huge related issue where the cartels are heavily involved.
Below, the article explains
what has been happening. Basically, the task force addressed oil theft last
year with new measures and now wants to address oil trafficking, which includes
blending and transferring.
“The state created a multi-agency task force to tackle
oilfield theft last year and Department of Public Safety officials told state
lawmakers it is time for fuel trafficking to receive similar scrutiny.”
“Cartels sometimes drive empty trucks into the U.S. and
fill them up with legally purchased and tax-free fuel from licensed terminals,
said Martin. The trucks are then driven off their approved routes to
unregulated fuel sites. Cheaper products are blended into the fuel, customs
documents are forged or altered, and the fuel is brought into Mexico, which has
an underdeveloped refining industry, he said.”
“Those fuel products, including diesel, are often sold
at two-to-three times their cost in the United States.”
“Making it illegal for trucks carrying hazardous
materials to deviate from pre-planned routes, or to carry more than 80,000
pounds, could potentially disrupt cartel fuel smuggling operations, state and
industry officials have said.”
“The department is focused on identifying high-level
cartel operations and exploring how to establish inspections for suspected
illicit fuel operations, said Maj. Tim Murphy, head of public safety for Texas
DPS.”
"This is organized crime," said Murphy.
"We had the same thing we dealt with in the oilfield when they steal oil –
It isn't the guy stealing the oil that we want to get to, it's the guy that's
puppeting that person."
References:
Smuggled
Texas fuel is bankrolling cartels, state officials say. Rachel Nostrant. The
Houston Chronicle. August 20, 2026. Smuggled
Texas fuel is bankrolling cartels, state officials say





























