BY COMFORT OGBONNA
U.S. Senator Ron Wyden has reached out to seven major maritime shipping companies as part of a sweeping inquiry into cartel-linked fuel smuggling between the United States and Mexico, pressing the firms to explain how they ensure their tankers are not used to transport illicit hydrocarbons.
Copies of the letters show Wyden asking detailed questions about the companies’ vetting and compliance procedures amid growing concern that organized crime groups have penetrated legitimate supply chains in the North American energy sector.
The letters, dated Friday, were sent by Wyden in his capacity as the most senior Democratic member of the Senate Finance Committee. They come against the backdrop of mounting evidence that stolen crude oil and bootleg fuel have become the second-largest source of revenue for Mexican cartels after drug trafficking, according to the U.S. Treasury. Authorities say criminal networks have increasingly diversified their operations, turning fuel smuggling into a highly lucrative enterprise that rivals narcotics in scale and profitability.
Cartels have achieved this by embedding themselves within the vast and complex energy infrastructure that spans North America, mastering the logistics of moving petroleum products by truck, rail, and, more recently, large oil tankers. Law enforcement officials say this expansion reflects a striking level of sophistication, with criminal groups enlisting a mix of legitimate oil industry participants to help procure and transport fuel. In some cases, companies are allegedly drawn in unknowingly, while in others, individuals are suspected of actively collaborating with smugglers.
“I want to be sure both shipping companies and the U.S. government are doing everything in their power to shut off this revenue stream,” Wyden said in an email response. He described the letters as the first step in a broader effort to understand how these criminal networks operate, where oversight mechanisms are breaking down, and what measures could be strengthened to prevent abuse of international shipping routes.
Wyden’s correspondence references a detailed investigation that reconstructed how the alleged smuggling scheme operates and how it exploits loopholes across the U.S. energy sector. The inquiry highlighted the involvement of a wide range of entities, from oil majors and shipping firms to regulatory and government agencies, underscoring the complexity of policing an industry that moves enormous volumes of fuel across borders every day.
The senator sent letters to seven of the world’s largest oil tanker operators: Torm, International Seaways, Norden, CMB.Tech, Frontline, Teekay, and Scorpio. He has asked each company to provide comprehensive information by January 10, 2026, detailing the due diligence measures they use “to ensure their oil tankers are not utilized to transport illicit fuel.” Wyden emphasized that transparency from industry leaders is essential to closing gaps that cartels have allegedly exploited.
None of the companies named has been charged with wrongdoing. However, Torm previously managed two vessels that were allegedly used for oil smuggling earlier this year, according to findings cited in the investigation, which drew on documents and security sources. CMB.Tech said it conducts due diligence, adheres to know-your-customer standards, and complies with all applicable regulations, adding that it intends to respond fully to Wyden’s questions. Belgium-based Norden confirmed receipt of the letter and stated that its shipping operations are carried out in compliance with relevant laws. The remaining companies did not immediately comment on the inquiry.
Authorities say Mexican cartels have rapidly expanded their grip on the multi-billion-dollar trade of smuggling fuel from the United States into Mexico. At its core, the scheme often relies on exploiting tax differentials. Mexico imposes a levy known as IEPS on various goods, including imported diesel and gasoline. Smugglers evade the tax—often amounting to more than half the value of a shipment—by falsely declaring imported fuel as other petroleum products that are exempt from the duty. Because tanker shipments carry vast volumes, a single load can generate millions of dollars in illicit savings.
Security sources in both Mexico and the United States identify the Jalisco New Generation Cartel as the dominant force in fuel and crude oil smuggling and the only cartel known to be using large tankers for this purpose. The scale of the operation has grown so dramatically that bootleg fuel is now estimated to account for as much as one-third of Mexico’s diesel and gasoline market, siphoning profits from major oil companies and distorting legitimate trade. Illegal fuel imports are valued at more than $20 billion annually, according to officials involved in estimating the size of the underground market.
“The scope of these illicit fuel smuggling operations is staggering,” Wyden wrote in his letters. He warned that dismantling this industry is critical to weakening cartel finances and limiting their ability to produce and distribute fentanyl, cocaine, and other deadly drugs in the United States. Wyden stressed that while governments must act, the international shipping industry also has a responsibility to ensure its vessels and systems are not used to facilitate what he described as a dangerous and lawless trade.
Original article
Comments