Citation: Vivoda, V.; Krame, G.; Spraggon, M. Oil Theft, Energy Security and Energy Transition in Mexico. Resources 2023, 12, 30. https://doi.org/10.3390/ resources12020030 Academic Editor: Witold-Roger Poganietz Received: 23 January 2023 Revised: 14 February 2023 Accepted: 16 February 2023 Published: 17 February 2023 Copyright: © 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/). resources Article Oil Theft, Energy Security and Energy Transition in Mexico Vlado Vivoda * , Ghaleb Krame and Martin Spraggon Research and Innovation Centre, Rabdan Academy, Abu Dhabi P.O. Box 114646, United Arab Emirates * Correspondence: vvivoda@ra.ac.ae; Tel.: +971-503260350 Abstract: Oil theft refers to the exploitation of crude oil or refined petroleum products for criminal purposes. In Mexico, oil theft—referred to as huachicolero—is endemic and widespread. By framing it within the energy security and transition context, this paper offers a new perspective on the problem of oil theft in Mexico. Focusing on crude oil and refined petroleum, the paper demonstrates that Mexico’s energy security—as framed around the 4As (availability, accessibility, affordability, and acceptance)—has deteriorated over the past decade. Application of the 4As framework in the Mexican context shows that the increasing frequency of oil theft has contributed to this deterioration. The proposed solution to the energy security and oil theft problems is centred on Mexico moving from gasoline and diesel to electrification in the transportation sector. The paper demonstrates that, while transport electrification in Mexico has been lagging behind other countries, recent developments in the country point to growing momentum among the country’s political and business elites, in tandem with US partners, in support for the energy transition. Areas where further emphasis should be placed to accelerate Mexico’s energy transition in the transportation sector are identified. Finally, the feasibility of and potential limitations associated with implementing the transition are evaluated. Keywords: Mexico; oil theft; energy security; energy transition; electrification 1. Introduction Oil theft refers to the criminal exploitation of crude oil or refined petroleum products [1,2]. The transnational nature of oil supply chains gives criminal groups that commit oil theft a global reach [2]. Oil theft is commonplace across many developing—as well as developed—countries. Oil theft in Mexico, locally referred to as huachicolero, is endemic and widespread [3]. The number of illegal taps in Mexico increased from around 200 per year before 2007 to 3000 in 2013, peaking at 15,000 in 2018 [4,5]. Illicit pipeline tapping accounts for most of Mexico’s oil theft. Historically carried out in a rudimentary way by huachicoleros, illegal tapping has been transformed into a sophisticated criminal activity controlled by Mexican criminal cartels, who use their money and military power to acquire information on the potential locations of pipeline valves [6]. Cartels also have access to sophisticated technology and expertise that allow large-scale pipeline tapping. They can further store large amounts of gasoline and sell it on the black market [7]. The existing literature, briefly reviewed in Section 2.1, does not consider how oil theft affects Mexico’s energy security. In order to address this research gap, this paper utilises an established energy security framework to evaluate the impact of oil theft on Mexico’s energy security. The main contribution to the literature is the assessment of Mexico’s energy security in the transportation sector over the past two decades. Findings indicate that Mexico’s energy security has deteriorated during this period. The analysis presented in the paper demonstrates that oil theft and the associated phenomena have contributed significantly to this deterioration. Policy recommendations for the Mexican government may assist in improving the country’s energy security and reducing the prevalence of oil theft. Transport electrification is identified as a potential solution to Mexico’s energy security and oil theft problems. Resources 2023, 12, 30. https://doi.org/10.3390/resources12020030 https://www.mdpi.com/journal/resources