Local Disruptions Involving Pemex are Sending Tremors Through Mexico’s Oil Supply Chain

 

Over the past few months, Pemex Oil has suffered from various local level disruptions across Mexico including gas leaks and environmental protests. The impact of these disruptions goes far beyond the Pemex supply chain, producing serious problems for a variety of businesses throughout the country.

Last week, a Pemex gas leak in Puebla City forced a mass evacuation, causing more than 1,000 local businesses to shut down. In fear of a potential explosion, authorities also closed all nearby roads and access points. With little communication from local officials, companies’ supply chains went blind, forcing them to guess on how to navigate shipment routes.

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Local community members created a blockade around a Pemex fuel storage unit in Villahermosa, Campo Carrizo last month in protest of the environmental damages caused by the company. The blockade prevented Pemex oil from reaching distributors throughout the Tabasca region, creating fuel scarcities at numerous nearby gas stations. Within a few days, the impact of this fuel shortage quickly materialized into supply chain breakdowns, as gas shortages prevented distributors from making deliveries and completing shipments. With no projective foresight into this oil shortage, companies were left on their heels, lacking alternatives to keep their supply chain running smoothly - except for companies using GroundTruth Global. GroundTruth Global picked up on this protest during the early stages of its development and alerted nearby companies of a potential disruption, providing the necessary foresight and context for companies to make adequate adjustments to avoid supply chain breakdowns.