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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Nov. 20, 1978)
Viewpoint The Battalion Texas A&M University Monday November 20, 1978 Mexican oil finds change picture for U.S. By LeROY POPE UPI Business Writer NEW YORK — Mexico’s huge new oil deposits have changed the world’s energy picture so drastically that President Carter should reverse his present energy policy, according to one top petroleum re searcher. Dr. Irwin M. Stelzer says the emergence; of’ Mexico as a potential major oil exporter brings into question the as sumptions underlying the administration’s energy policy. “The persistent adherence to a view of energy resource exhaustion and scarcity, which was wrong from the beginning, now becomes dangerously removed from reality,” said Stelzer, president of National Economic Research Associates, a New York-based economic consulting firm specializing in energy. Stelzer says the United States, Mexico and Canada need to pursue a cooperative, coordinated development of energy on a continental basis. He says the United States won’t need synthetic fuels and huge imports of liquified gas if more friendly policies toward Mexico are pursued that will win us a large share of the Mexican oil and gas. It is more sensible, he said, to buy oil and gas, even at fairly stiff prices, from a natural trading partner such as Mexico '“than to run bilateral trade deficits with countries that bank most of their foreign exchange earnings and thus create funda mental instabilities in the international monetary system.” Stelzer said there is little reason now to doubt that Mexico’s newly discovered pe troleum reserves, kept largely secret by the Mexican government for five years may equal or surpass those of Saudi Arabia. THE OIL FINDS in the states of Chiapas and Tabasco on the Isthmus of Tehuantepec and the newer offshore dis coveries under the Gulf of Campeche, ac cording to Stelzer, are so rich that the wildcat drilling success rate has been an astounding 82 percent. He says this con trasts with rates of 16 to 27 percent in the United States. At first, the Mexicans were inclined to believe the offshore discoveries under the Gulf of Campeche were a continuation of the Reforma field on the Isthmus of Tehuantepec but further drilling revealed that the offshore field is separate. It is be lieved now, Stelzer said, ‘‘that the com bined offshore and onshore (fields) may be part of a giant ancient barrier reef that encircled in former geologic times, what is now the Yucatan Peninsula.” Stelzer said the geologic conditions re- r The new bneed of Wet-back.* Ho!a, Amigo/ semble those in the United States and the U.S. areas of the Gulf of Mexico, therefore the oil, which is high quality and low- sulfur, is relatively easy and cheap to bring to the surface. He said the Mexicans con ceivably could ultimately produce nearly 10 million barrels of petroleum a day but they have no desire or reason to waste their oil and gas so extravagantly. MUCH MORE REALISTIC, he says, are forecasts of a production of 3.25 to 3.9 Analysis million barrels a day by 1985. Production was running at 650,000 barrels a day in February, 1977, and the Mexican state oil company, has set a public goal of 1.5 mil lion barrels a day by 1982. Even recent Energy Department analyses give the impression the U.S. gov ernment has all but ignored the possibility it may have a second Saudi Arabia on its doorstep. But Energy Department offi cials say that is an incorrect impression. “The Mexican government was very good at keeping this confidential until Sep tember,” one official said. “Now they’re talking about what they have. The Mexi cans kept the lid on the figures, under played them, for domestic political rea sons. We knew what their estimates were, but we didn’t publish them. It’s wrong to say it’s been ignored.” Oil industry officials suggest there may be a second reason, besides courtesy to a neighboring goverhmept, _f6r the “EflfeTgV Department’s low profile on Mexican oil. They say the United States apparently doesn t want to become heavily reliant on oil from Mexico because it might lead to a political conflict between energy needs and social problems such as illegal immi gration in the West and Southwest. BUT U.S. OIL COMPANIES may not be free from ulterior motives when talking about Mexican oil. Mexico was the first nation to fully nationalize its oil fields, in 1938, and has refused all efforts by the U.S. oil industry to cash in on the new discoveries. “They (the Mexicans) will always do it on their own,” said one senior Energy Department official. “They’ll be bringing in U.S. consultants and buying U.S. equipment, but they’ll never let the U.S. companies in again — or never in our lifetimes, at least.” In any case, the United States is already Mexico’s best oil customer. In 1977, the first year Mexico had much oil to export, the United States imported an average 170,000 barrels a day, 17 per cent of Mexico’s production of almost 1 million barrels a day. Energy Department officials estimate Mexico’s production will climb to between 4 and 5 million barrels a day by 1985, and they say the United States is likely to buy most of it. STELZER’S EXPLANATION of the Mexican reticence is more sympathetic. In the first place, he said, the Mexicans did not make the discoveries all at once but very gradually. Secondly, no interna tional oil companies were involved. The big oil companies were thrown out of Mexico in 1938 by President Lazaro Car denas, who accused them of having been > rapacious,-of having wastefully overpro- ~ duced and damaged the utfderground oil bearing formations, and of treating Mexi can labor oppressively. In addition, Stelzer said, the adminis tration of former President Luis Echever- ria “was dominated by hostility toward the United States.” He apparently feared that, with the real value of the big Mexican deposits being confirmed during a period of near hysteria in the United States over the Arab oil embargo, the Nixon-Ford administration might do almost anything to get access to the Mexican reserves, Stelzer said. President Jose Lopez-Portillo is follow ing a quite different policy, he said. The United States presently is getting 83 percent of what oil Mexico is exporting. But Lopez-Portillo has no intention of being dependent on the U.S. market or expanding production just to meet the demanding desires of U.S. oil companies and consumers. Instead, Mexico is building deepwater terminals at Salina Cruz on the Pacific and Pajaritos on the Gulf of Mexico to handle tankers up to 250,000 tons so she can ex port her oil anywhere in the world. There still is another reason why the Mexican discoveries remained under wraps so long, Stelzer said. “FOR 15 YEARS, until 1973, all petro leum prices were frozen in Mexico,” he said. “The effect of this freeze was to deny the state oil company the necessary finan cial resources for any significant expansion in exploration and development. Tempt ing as the early indications (of the new dis coveries) were, there was simply no way of increasing the pace of followup work and seeking foreign aid from any source was politically unthinkable.” The most significant feature of Mexico’s changed attitude is its willingness to ex port crude oil. For a long time, it would only export refined products. THE CONTROVERSY with the United States over imports of Mexican gas is different. American oil companies and utilities are willing to pay the $2.60 a thousand feet the Mexicans want for their gas but the Carter administration won’t permit it because it is more than Canada is getting for her gas exports to the U.S. and the Mexican price could be a complication in the fight over domestic gas price regulation. Finally, Stelzer said, Mexico still dis trusts the United States because of the persistent memory of her big losses in the war in the last century, of the U.S. incur sions into her territory in this century (President Wilson’s massive 1916 retalia tion for a border-raid by Pancho Villa’s rebel army) and “the continuing failure of the United States to live up to its treaty obligations concerning (water from) the Colorado River” on which so many Mexi can farmers depend. Modern foods as grandma woulda dunnit By DICK WEST WASHINGTON — After buying a box of so-called breakfast bars at the supermar ket, I fell to wondering who creates the recipes for products of this type. One look at the list of ingredients will pretty well convince you that it isn’t an old family recipe. I mean, if these were break fast bars like grandma used to make they wouldn’t contain quite so much polysor- bate 60. Cooks back in grandma’s day might have made liberal use of sorbitan monostearate when whipping up a batch of breakfast bars, but they tended to go easy on the polysorbate 60. Even polysorbate 59 probably would have been a bit much for ol’ granny. But recipes like this don’t just mate rialize out of thin air. Somebody has to de cide how much copper gluconate to put in the batter, and somebody has to make the determination that the breakfast bars would be improved by the addition of thiamine mononitrate. My guess is that the companies that Humor make these products maintain test kitch ens for experiments with new culinary ideas. And I like to think the kitchens are operated by little grey-haired ladies who are pretty fussy about what goes into the oven. I can see nice Mrs. Fiddleworth stirring away at the mixing bowl. Occasionally she lifts the big wooden spoon and tips out a bit of batter to see how well it drips. Then she calls to Mrs. Upbash. “You wanna step over here and taste these breakfast bars. Mossy Belle? I think they need something.” Mrs. Upbash takes the spoon to her lips and rolls her eyes reflectively. “I’d say a pinch or two of calcium pan tothenate might help. Right now it’s got a mite too much pyridoxine hydrochloride for my taste.” Mrs. Fiddleworth wrings her apron in exasperation. “Land sakes! It was the ferr ous fumarate I was afraid of getting too much of.” Mrs. Upbash pushes back a wisp of hair from her forehead. “A little pyridoxine hydrochloride goes a long way. But I’m glad you remembered the sodium stearoyl-2-lactylate. To me, breakfast bars wouldn’t be breakfast bars without a thimbleful of sodium stearoyl-2- lactylate.” Mrs. Fiddleworth smiles. “I always say a dash or two of magnesium hydroxide does wonders too.” Mrs. Upbash nods. “You just can’t have too much magnesium hydroxide and cal cium caseinate as far as I’m concerned.” “Well, OK, then,” Mrs. Fiddleworth says. “As soon as I sprinkle on the lecithin and naicinamide, it will be ready for the baking pan.” Mrs. Upbash nods again. “By the way, what’s that funny looking stuff on top of the stove?” “It’s new to me, too,” says Mrs. Fiddleworth. “They call it salt.” Letters to the Editor Aggie blood drive a success, but still more needed Editor: I was truely impressed with the results of the Aggie Blood Drive this semester. One thousand sixty persons gave a total of more than 132 gallons of blood. But I am concerned that the support shown blood drives is unnecessarily limited to only once a semester, coincident with the visits of the Wadley Blood Service. I wonder if this activity is not, primarily, simply another tradition around which Aggies rally to what their united efforts can achieve. I fear it may be more a manifesta tion of group spirit than of human concern. There can never be too much blood in re serve, but there is often too little. There are a few valid medical reasons for not donating blood (mostly of a tempo rary nature), but the most common range from selfish unconcern to fear. I am amazed at those who have never tried giv ing blood. A lot of people simply don’t want to be bothered. Thank God for those who aren’t so self-centered. There are a lot of people out there who suddenly find themselves dependent on the generosity of others to keep them alive. A pint of blood can be safely donated every eight weeks, so a conscientious per sonal plan is to give every other month. The Central Texas Red Cross Blood Pro gram of the American National Red Cross comes to the Bryan/College Station area every month, but there is often difficulty in meeting the quota (determined by the average need of this area) of only approx imately 200 units. I find this incredible. The number of available donors in the community as a whole would be difficult to estimate, but viewing the campus com munity alone is very illustrative. Consider ing age and health, the entire student body can be considered potential blood donors. If even half of these (an un realistically low estimate) proved unable to qualify as donors, that still leaves 15,000. Assuming an every-other-month schedule of donation, that is 7,500 pints of blood that should be donated every month. (By this standard, even the Aggie Blood Drive didn’t do very well, did it?) To maintain the tradition of an or ganized blood drive on campus is lauda ble, but sustained effort to meet human need is more noteworthy. Blood collection on campus occurs only three times a year, and the blood donated is not available to area hospitals. Shouldn’t we, even as tern-' porary residents of this area, contribute to meeting local blood need? The only source of human blood is the human donor. Whole blood is commonly separated into its component parts, so one unit can benefit up to 6 people. Hundreds of times each day people are given a sec ond chance to live, simply because a nuc leus of thoughtful, nameless persons cares enough to take the time and trouble to give blood. This makes the donation of blood one of the most highly personal and unselfish acts a person can perform. The Aggie Blood Drive gets a lot of pub licity and a lot of backing. The Red Cross Blood Drive deserves more of both. The next blood drive will be at the Ramada Inn Tuesday and Wednesday from noon until 6 p.m. Please, show some Aggie support, and human concern, and put that 200-pint quota to shame. —Randy Kirkpatrick, Graduate Stu dent Hughes’ letter of Nov. 15 defending “To day’s Student.” Before going any further, I wish to state that I am not objecting to Hughes’ criti cisms of homosexuals and homosexuality. I do very definitely object, however, to his statement that “There have been few complaints about the paper (Today’s Stu dent) made other than by homosexuals and Iranians.” Firstly, Hughes’ lumping Iranians with homosexuals shows more than a trace of good old-fashioned Archie Bunker-type bigotry. “Homosexual” may be a dirty word, but I never heard that “Iranian” — or “Italian ”, “Cyke,” or “Mexican” — was. Secondly, from what source does Hughes get his information that “Today’s Student’ is only unpopular among homosexuals and Iranians? I am a native Texas and am just as heterosexual as I pre sume Hughes to be. In spite of my being such a loyal, upstanding citizen (I even know the Lord’s Prayer and the Pledge of Allegiance) I and many of my friends (also American and also hetersoxual) consider “Today’s Student” to be a farcical, opinionated, more than slightly objection able piece of pseudo-journalistic prop aganda. Now, Hughes, you are certainly entitled to your opinion, and I am equally entitled to mine. But don’t call me names because I disagree with you. I refer to the last sentence of your own letter: “Homosexuals should learn to open their minds and close their collective mouths.” —Laurel Mitchell, ’82 or Battlestar Galactica, it is still a bright spot in my daily life. The Battalion staff does an excellent job, considering the small reward the members receive. At times, however, the complaining, moan ing and groaning in the letters to the editor gets a little old. I am thankful that I am able to write this letter and live in a country where it can be freely published. I live in a time and coun try of adequate provision. Had I been born in another country, I might now be sitting in the streets starving to death. Sbisa food really isn’t all that bad. I am grateful for the opportunity to at tend TAMU, the best of many fine univer sities (yes, our rivals across the Brazos in cluded) of this nation. If we Aggies are not the most intelligent students, at least we are the friendliest. Not all our favorite political candidates won in the last election, but the demo cratic (republican) process is working. If our governmental leaders seem dishonest and lackadaisical, remember we are to blame. We elected most of them. On a less serious note: Homosexuals at A&M may not be all that bad. Men presently outnumber the women, and more homosexuals may sim ply reduce the competition in normal dat ing. ‘Lumping’ unfair Editor: Batt-fan gets serious Some students say that the bonfire is a waste of time and wood. I am glad some one has the time and wood to spare. Editor: I enjoy reading the Battalion each weekday. Though it isn’t Mork and Mindy And thank heaven Highway 6 does run both ways. I really enjoy going home for the weekend now and then. —Frank Wurbs, ’77 Top of the News CAMPUS Miller to help on scholarship Texas A&M University President Jarvis E. Miller is among a select group of university presidents invited to the White House Dec. 5 by President Carter to explore means of implementing the Hubert H. Humphrey North-South Scholarship Program. The new scholarship program honoring the former vice-president and senator from Min nesota is designed to bring to this country young men and women of modest means from all of the developing nations which have di plomatic relations with the United States. A White House spokesman said the scholarships will be offered to those engaged in public ser vice for a one-year course in fields directly related to their work, not necessarily leading to a degree. The fields of study will include health services, social work, rural or urban development, legal services, education, public administration, and communication. Big brothers and sisters needed Volunteers are needed in the "Big Brother-Big Sister” program to ed Ci provide male/female companionship to underprivileged children. This requires only a couple of hours each week. Bryan Boy’s Club also needs volunteers to fill various positions. For more information on either of these programs go by the Student Volunteer Services cubi cle in room 216 of the Memorial Student Center or contact Janet Cooper at 845-4508 or Debbie Cardwell at 693-3012. Deadline is Dec. 1. IS Economics programs get boost The Phillips Petroleum Foundation Inc. has tentatively committed $125,000 over the next five years to support economics programs in Texas A&M University’s Center for Education and Research in Free Enterprise. The foundation has pledged $25,000 for three consecu tive years and will consider funding for an additional two years after evaluating the overall effectiveness of the center. Texas A&M’s free enterprise center was established two years ago by funding from the Association of Former Students. STATE Gun salute leads to arrests The Brown Berets, a group of Mexican-American activists fired an 18-gun salute — apparently using blanks — in a demonstration Saturday, and police in Houston arrested 10 members of the group. A Brown Berets spokesman said about 60 persons held a demonstration in Moody Park Friday in honor of Adan Hernandez, who died in police custody Sept. 25. The group’s spokesman said police claimed Hernandez strangled himself, although examining doctors said he had a cardiac arrest. Wind hampers fire fighting effort Boots and Coots Inc., a Houston well fire fighting company, tried again Saturday to pump heavy drilling mud into a spewing natural gas well that blew out Wednesday in Bayou Sale, La. The blowout oc curred as workers were preparing to pour drilling mud down the well to stop the gas flow while repairs were being made. The gas was feeding a 20-foot high flame atop a "Christmas tree” of valves regulat ing the well, which is located in a remote section of St. Mary’s Parish near the Intracoastal Waterway. A wind shift hampered the process. NATION Hunters beware; missiles fired West German Air Force personnel are scheduled to fire two Persh ing missiles today from the McGregor Range northeast of El Paso. These are the fifth and sixth in a series of fall Pershing launchings. Deer hunters in the northern extension of the range will be evacuated during the test. Army officials at White Sands Missile Range, N.Mex., announced several roadblocks also will be erected, Experts keeping eye on flu cases Influenza experts at the national Center for Disease Control in Atlanta are keeping a close watch on the season’s first reports of Russian flu cases for signs of any changes in the virus that might make more people susceptible to infection. Because of its wide distribu tion, CDC flu experts believe there will be outbreaks in most of the states this fall and winter. In winter and early spring outbreaks in the United States, the virus attacked those under age 25 almost exclu sively, although a few older people contracted the illness in the later stages. WORLD Plot stopped; King continues trip The Spanish government, on the eve of King Juan Carlos’ trip to Latin American, crushed a plot by right-wing military and police officers to overthrow the post-Franco democracy, Madrid news papers said Saturday. Government sources said at least 12 officers, including four generals, five colonels and three lieutenant colonels, were arrested in connection with the conspiracy. The king left on a 15-day trip to Mexico, Argentina and Peru as planned Friday but was kept informed on developments in Spain. WEATHER Rain and a few thundershowers through Tuesday. High Monday high 60’s, low early Tuesday high 40’s. The Battalion letters policy Letters to the editor should not exceed 3(X) words and arc subject to beum cut to that length or less if longer. The editorial staff reserves the right to edit such letters and does not guarantee to publish ant/ letter. Each letter must be signed, show the address of the writer and list a telephone number for verification. Address correspondence to Letters to the Editor, The Battalion, Room 216, Reed McDonald Building, College Station, Texas 77843. Represented nationally by National Educational Adver tising Services, Inc., New York City, Chicago and Los Angeles. J UJr iVasl: ion or it Mi< ;r the it an o bed ’ wever d the derstai offensi miles : Secrets d Sov ibrynin ipartm< . Uni UBBC inot co yment the So detei malizal JtC an SALT howert dathesc the reas Mathi ffects c tates th ests ma He w ^alifano esearch nnounc Last \ he Nev iim witl “Ther 'ancer is Many y form< laims w or canc< “Ever George ■now of nng ne 84i The Battalion is published Monday through Friday from September through May except during exam and holiday periods and the summer, when it is published on Tuesday through Thursday. Mail subscriptions are $16.75 per semester; $33.25 per school year; $35.00 per full year. Advertising rates furnished on request. Address: The Battalion, Room 216, Reed McDonald Building, College Station, Texas 77843. United Press International is entitled exclusively to the use for reproduction of all news dispatches credited to it. Rights of reproduction of all other matter herein reserved. Second-Class postage paid at College Station, TX 77843. MEMBER Texas Press Association Southwest Journalism Congress Editor KimT' : Managing Editor LizN^ ! Assistant Managing Editor .Andy Wilte Sports Editor Davie City Editor Jamie Aitf Campus Editor Stevel 1 News Editors Debbie PanP Beth Calhoun Staff Writers Karen Rogers, M Patterson, Scott PendleK Sean Petty, Michelle Scudi Diane Blake, Lee Roy Lesdif Jr., Dillard Stone Cartoonist Doug Grafc Photographers Ed Cum® Lynn Blanco Focus section editor Gary Wei Opinions expressed in The Battalion are those of the editor or of the writer of the article and are not necessarily those of the University administration or the Board of Regents. The Battalion is a mni-profil./ supporting enterprise operated bij shiib' as a university and coiwnunity iwicum* Editorial policy is determined by the al'M ■ ■ y, IBB