Oil crisis chokes the economy of Ciudad del Carmen

The oil boom at the Sonda de Campeche, with 200 platforms, attracted thousands of people to Isla del Carmen. Now, a drop in oil prices has caused the worst economic crisis in the region in the last 40 years.

Attracted by wages of over 20,000 pesos per month (US$1,150) thousands of workers moved to Isla del Carmen in the 70s and the 80s, but the flow has now stopped after Petróleos Mexicanos cut its oil exploration and extraction projects by 100 billion pesos (US$5.7 billion).

Companies that leased hotels to accommodate hundreds of workers from Mexico, Taiwan, China and Rumania are now struggling because they have no customers after many Pemex suppliers lost contracts.

Some of the firms that have left are one from Singapore that was trying to obtain an accommodation contract from Pemex; Grupo Tradeco, that builds bridges and roads, and the oil services company Oceandrill, while Halliburton fired more than 4,000 workers in late 2015 and Cotemar is not hiring either.

Iliana Herrera, legislator of the National Action Party (PAN), says that the economy of Ciudad del Carmen is in crisis and added that the worst is expected in the following months.