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Rolly

Aug 17, 2012, 11:43 AM

Post #1 of 9 (1666 views)

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México's falling oil production

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NEW YORK (CNNMoney) -- Mexico, one of the largest suppliers of oil to the United States, has a big problem: Its production of crude is falling fast. In 2008, the country's production peaked at 3.2 million barrels a day, according to the U.S. Energy Information Administration. Last year, it didn't even produce 3 million a day.

The reason: aging oil fields and years of underinvestment.
Industry experts say Mexico could revive production if it allowed more investment from international oil companies. But under current policy, EIA says Mexico will have to start importing oil by 2020.

Read more here.

Rolly Pirate

RickS

Aug 17, 2012, 6:58 PM

Post #2 of 9 (1610 views)

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Re: [Rolly] México's falling oil production

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The article said, "For the United States, the decline in Mexico's oil industry means it will likely be buying more oil from Canada and Saudi Arabia, the No. 1 and No. 2 sources of U.S. oil imports. Mexico is now third"

The reality is that it not only is likely, it is already happening... the US is already buying more oil from the Saudies than last year. And US refineries in Texas (Valero) are getting prepared to use Canadian sand tar oil to refine for gasoline (the process is different) as soon as the pipeline is completed. This will help to replace the dwindling imports from Mexico in the coming years.

playaboy

Aug 18, 2012, 8:00 AM

Post #3 of 9 (1560 views)

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Re: [Rolly] México's falling oil production

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I have read articles that up to 20% of the oil and gasoline produced by Pemex gets stolen every year. That is a lot of money probably millions of $$$ a day.

RickS

Aug 18, 2012, 2:56 PM

Post #4 of 9 (1508 views)

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Re: [playaboy] México's falling oil production

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The two words "20%" and "stolen" are to me, in this context, an oxymoron. Either 20% is wrong or "stolen" is wrong... probably the latter.

Just saying.....

mazbook1

Aug 18, 2012, 3:10 PM

Post #5 of 9 (1504 views)

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Re: [RickS] México's falling oil production

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Rick, I believe that he might be referring to gasoline and diesel stolen from Pemex, rather than crude oil. From years of news about this problem, it seems that there is a continual battle of wits between the refined product thieves and Pemex, both over thefts from illegally tapped pipelines and theft of transport tankers. I would have my doubts about that 20% number though. Although a huge and real problem, it doesn't seem that it could possibly be THAT high.

RickS

Aug 18, 2012, 3:15 PM

Post #6 of 9 (1498 views)

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Re: [mazbook1] México's falling oil production

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I agree about the 20% (not doubting you playaboy!).

If it were 20% and Pemex could recover/stop half of that 'overnight', think of the boost to GDP that would be for Mexico.

johanson

Aug 18, 2012, 3:16 PM

Post #7 of 9 (1496 views)

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Re: [RickS] México's falling oil production

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I've looked at charts at the local photo-voltaic stores showing the downward trend of production by Mexico. I don't remember the exact source or the specifics. It was just very obvious that the production was trending going down and that the gasoline prices will continue to go up. It was good motivation for me to invest in electric solar panels.

richmx2

Aug 18, 2012, 3:41 PM

Post #8 of 9 (1487 views)

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Re: [Rolly] México's falling oil production

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It's not conspiracy thinking to point out that mismanagement has been tolerated in government agencies as a means to justifying privatization of public services and PEMEX's problems have more to do with management than labor. That said, there's no magic in "private investment" that somehow is going to create more oil than public investment. That is... if pumping more oil is necessary. There is no reason Mexico MUST sell oil, although it would mean changes in how the government collects revenue. As it is, some economists have pointed out that by just using oil for internal development, the Mexican economy might be better off than it is through sales of crude.

Then again, maybe just going solar and eolitic and ... isn't such a bad idea. It's not like pumping more oil in the near future is going to do more than just put off the day of reckoning.

http://mexfiles.net
http://editorialmazatlan.com

playaboy

Aug 18, 2012, 3:53 PM

Post #9 of 9 (1480 views)

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Re: [RickS] México's falling oil production

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Here are some links to articles. I might have gotten the 20% figure wrong but it is a growing problem.

http://online.wsj.com/...391910225256264.html

http://www.insightcrime.org/...xico-pemex-oil-theft

http://www.economist.com/node/21559962

(This post was edited by Rolly on Aug 18, 2012, 4:02 PM)