Mexican President Lopez-Obrador Offers to Bail Out the US from the Biden Created Energy Crisis, and Supply Electricity to Texas

Gasoline in Mexico is $3.12/gal.  Gasoline in the United States is $4.78/gal

The media did not give this much attention; however, Mexican President Andres Manuel Lopez-Obrador thoroughly, albeit diplomatically, dressed down Joe Biden over his economic and energy policy during a Tuesday visit to the White House.

You might remember that together with a host of south and central American leaders, Mexican President Lopez-Obrador refused to attend Joe Biden’s Latin-America summit last month {Go Deep}.  With that in mind Obrador’s media remarks in the oval office are quite remarkable in their pointedness.

The video and audio are tenuous, and the delay for interpretation makes following the flow of AMLO’s comments a little challenging.  However, if you read the transcript you can clearly see how AMLO is diplomatically undressing Biden over the economic issue of U.S. energy policy.  It would appear that AMLO is not part of the great western reset and has no intention on inflicting the pain that is deliberately being created by other western leaders.  [Video at 23:30, Transcript Below] WATCH:

Now keep in mind that socially AMLO is a soft-socialist (immigration).  However, he is also a strong economic nationalist who has previously expressed a strong dislike for the influence of multinational corporations in Mexico.  AMLO is not a World Economic Forum acolyte.  AMLO is on team BRICS.

In these remarks, AMLO is very pointedly telling Joe Biden that his U.S. energy policy is seriously flawed.  It is really quite remarkable.

AMLO tells Biden that Mexico will continue investing in expanded refining of gasoline, and he is willing to sell that gasoline to American companies because Joe Biden will not issue permits to expand gasoline refining capacity in the United States.  Additionally, AMLO affirms his position on further oil development in Mexico and then, here comes the kicker,…. offers to expand electricity sales to the United States, including supplying Texas with electricity because both the Biden administration and Texas are not developing their own energy resources.

AMLO is telling Biden that Mexico will increase energy subsidies to the United States if Biden asks him to.  Think about that.

[Transcript] – PRESIDENT LÓPEZ OBRADOR:  (As interpreted.)  Yes, I fully coincide with what you have proposed, President Biden.  And I could summarize everything we’ve been saying in five basic items of cooperation.

Number one, since the energy crisis started, Mexico has used 72 percent of its crude and fuel oil exports to United States refineries — 800,000 barrels a day.

Therefore, we decided that while we’re waiting for prices of gasoline to go down in the United States — and I hope that Congress approves or passes your proposal, Mr. President —

PRESIDENT BIDEN:  It has gone down for 30 days in a row.  (Laughs.)

PRESIDENT LÓPEZ OBRADOR:  (As interpreted.)  — of lowering — lowering prices, yes.  That’s it.

In the meantime, while we’re waiting for prices to go down, we have decided that it was necessary for us to allow Americans who live close to the borderline so that they could go and get their gasoline on the Mexican side at lower prices.

And right now, a lot of the drivers — a lot of the Americans — are going to Mexico, to the Mexican border, to get their gasoline.

However, we could increase our inventories immediately.  We are committed to guaranteeing twice as much supply of fuel.  That would be considerable support. 

Right now, a gallon of regular costs $4.78 average on this side of the border.  And in our territory, $3.12. 

Let me clarify something, and I also want to take advantage of this opportunity to thank you, Mr. President.  Most of this gasoline, we are producing it in the Pemex refinery that you allowed us to buy in Deer Park, Texas.

Two, we are putting at the disposal — or sending at the disposal of your administration over 1,000 kilometers of gas pipelines throughout the southern border with Mexico to transport gas from Texas to New Mexico, Arizona, and California for a volume that can generate up to 750 megawatts of electric energy and supply about 3 million people.

Three, even though the USMCA has made progress for the elimination of tariffs, there are still some others that could be immediately suspended.  And we could do the same with some regulations, regulatory measures, and tedious procedures or red tape in terms of trade related to foodstuffs and other products so that we can lower prices for consumers in both our countries, always being very careful in the protection of health and the environment.

Four, starting a private-public investment plan between our two countries to produce all those goods that will be strengthening our markets so that we can avoid having importations from other regions or continents.

In our country, we shall continue producing oil throughout the energy transition.  With the U.S. investors, we are going to be establishing gas-liquefying plants, fertilizer plants, and we shall continue promoting the creation of solar energy parks in the state of Sonora and other border states as well.

And we’re going to accomplish this with the support of thermal electric plants and also through transmission lines to produce energy in the domestic market, as well as for exports, to neighboring states in the American union, as for instance, Texas, New Mexico, Arizona, and California.  

It’s also important to mention that, two months ago, we took the sovereign decision of nationalizing lithium in Mexico.  This is a fundamental mineral, a fundamental input to advance in our purpose not to depend on fossil fuels.  And this will be available for the technological modernization of the automotive industry among our great countries — the countries of the USMCA. 

Five, orderly migration flow and allowing arrival in the United States of workers, technicians, and professionals of different disciplines.  I’m talking about Mexicans and Central Americans with temporary work visas to ensure not paralyzing the economy because of the lack of labor force. 

The purpose of this plan would be to support and to have the right labor force that will be demanded by the plan you proposed and that was passed by Congress of using $1 trillion for the construction of infrastructure works.  (read more)

Mexican President Lopez-Obrador is offering to bail out the United States energy crisis.

A crisis that Joe Biden has created.

We have officially gone through the mirror.

This is jaw-dropping.