Oil Theft by Cross-Border Criminal Gangs in the Permian Basin. (Energy Scams Part 3)

 

     The prevalence of the Mexican cartels is a testament to the failure of the Mexican government to reign them in, including AMLO’s government, which has clearly not done enough. These people are dangerous, violent, and a threat to all citizens and visitors as has been amply demonstrated.

     The latest crime scheme has been the theft of oil from Permian Basin wells and supply chains. This was first reported in May of 2024 by the Washington Examiner. They reported then that criminal gangs were recruiting illegal immigrants to aid them in organized oil theft. The theft has been small in scale and is not expected to grow too much but it can be damaging and disruptive to the small independent producers it often targets. Rep. Tony Gonzales (R-TX) noted then that Cuban nationals had been settling in West Texas and were getting involved in the oil theft networks. Matt Coday, president and founder of the Oil & Gas Workers Association noted:

 

“Truckloads of oil are being stolen from small, independent oil producers. Oilfield instruments, trucks, equipment, and even work boots and clothes have been stolen. These crimes hurt every American and smaller, independent producers especially.” 

 

     Apparently, the problem was first noted in 2023. The Washington Examiner explains:

“Oil tanker trucks are pulling up to storage tanks and siphoning oil from them, then driving away. Other thieves are taking scrap metal and pipes on site, as well as stealing large quantities of water and dirt, to be sold on the black market.”

     This is organized crime, plain and simple. Copper theft, a recurring problem in many places, also occurs in conjunction with it. When I worked directly for oil and gas companies in Appalachia, we occasionally had issues with damaged equipment, stolen equipment, and stolen oil but these were not organized crime efforts, more opportunist locals or disgruntled locals.

     In South Texas, local police and sheriffs are being trained to check documents from pulled-over drivers to better understand the possible involvement of illegal immigrants. At the time Gonzales and local law enforcement began trying to reign in the criminal networks, convening a task force and coordinating with the FBI. These criminal gangs are also involved in human trafficking, drug smuggling, gasoline theft, and apparently car smuggling. They have infiltrated the oil industry in Mexico and oil theft is their new cross-border enterprise.

     Fast forward to September 2024 and Gonzales is preparing legislation to crack down on criminal rings responsible for the theft. The legislation aims to optimize local, tribal, state, and federal cooperation, increase penalties for stealing oil or equipment, permanently fund the oil theft task force, and increase police presence and funding. The sharing of intelligence and resources is one aspect of the task force.

     Stealing gasoline is a more recent expansion of the criminal gangs as the Washington Examiner reports:

 

Oil thieves have recently expanded to stealing gasoline, according to Gonzales, who recalled a conversation with a gas station owner in West Texas.

 

"They have these vans that they cut the bottom out of, and they drive over the the cap of where the tanks are off to the side," said Gonzales. "They'll cut the lock, and they'll siphon out hundreds of gallons of gas from the gas station."

 

     These are brazen attacks on American businesses. A single oil truckload can be valued at around $15,000 to $20,000. That much gasoline would have a similar value. There are also reports of an oil thief assaulting an oil company employee.

     This problem needs to be stamped out. We do not need Mexican cartels stealing American oil and equipment. That is perhaps one reason Mexico does not advance its own oil industry. I also believe we need to aid Mexico in stamping out the cartels in Mexico. These are violent criminal gangs that are often seen as local heroes due to their (ill-gotten) wealth distribution. However, the Mexican government has to do much more. These cartels and other gangs are also involved in the human trafficking networks that bring more illegal migrants to the U.S. for profit. Thus, we need stronger border control as well.

 

 

References:

 

Texas oil thefts linked to illegal immigration spark federal response. Anna Giaritelli. Washington Examiner. September 20, 2024. Texas oil thefts linked to illegal immigration spark federal response (msn.com)

Illegal immigrants stealing oil from Permian basin near Texas border. Anna Giaritelli. Washington Examiner. May 10, 2024. Illegal immigrants stealing oil from Permian basin near Texas border - Washington Examiner