Alt-Coin Trader

Mexico's drug cartels siphon liquid gold

"The Zetas are a parallel government," said Eduardo Mendoza Arellano, a federal lawmaker who heads a national committee on energy. "They practically own vast stretches of the pipelines, from the highway to the very door of the oil companies."

The Zetas earn millions of dollars by "taxing" the oil pipelines -- organizing the theft themselves or taking a cut from anyone who does the stealing, according to Mexican authorities. The U.S. Treasury Department this summer designated two Zeta commanders as narcotics "kingpins," which allows authorities to seize assets.

The Zetas often work with former Pemex employees, according to Ramón Pequeño García, chief of anti-drug operations at Mexico's Public Security Ministry. The former employees "are highly skilled people who have the technical knowledge to extract oil from the pipelines. They are now under the control of the Zetas," Pequeño said.


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