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Thread: Mexico, One Of The World's Biggest Oil Producers, Is Running Out

  1. #1
    Join Date
    Jan 2005

    Mexico, One Of The World's Biggest Oil Producers, Is Running Out

    Mexico, one of the world's biggest oil producers, is running out

    By Valerie Rota and Patrick Harrington Bloomberg News
    Published: October 23, 2007

    MEXICO CITY: President Felipe Calderón of Mexico is delivering a grim message: The largest oil producer in Latin America is running out of crude.

    "Our oil reserves have been consistently falling," and the decline is "severely threatening" government finances, Calderón told a nationwide television audience in an address last month at the National Palace. That is the same place where seven decades earlier Lázaro Cárdenas cemented the anti-U.S. legacy of his presidency by nationalizing the oil industry.

    Mexico was the sixth-biggest producer last year, after Saudi Arabia, Russia, United States, Iran and China, down from fifth in 2005, according to the Energy Information Administration. In 1921, Mexico was No. 2.

    Calderón said in his Sept. 2 address that the country held proven reserves that could last nine years. Venezuela, the second-biggest oil producer in Latin America, has reserves to keep pumping at current levels for more than a century.

    The ban on private investment in its oil monopoly is depriving Mexico of the benefits of record high prices and contributing to a slowdown in economic growth. Production of crude, the top export for Mexico, has fallen 8 percent since 2004 to a seven-year low, data compiled by the government show.

    Mexico is being punished for its inefficiency in the foreign exchange market. The peso fell 0.08 percent against the dollar this year, the worst performance among the 16 most-traded currencies. Goldman Sachs in New York and Credit Suisse in Zurich say that the decline will worsen.

    "If the oil output situation was different, if it was stronger, if oil output was rising, not falling, we most likely would be seeing a stronger peso," said Alonso Cervera at Credit Suisse in New York.

    The drop in production is hurting economic growth by reducing funds to improve highways, bridges and ports, Cervera said. Oil provides 40 percent of government revenue and the slowdown contributed to a 47 percent decline in the national budget surplus in August, according to the Finance Ministry.

    The Mexican economy has grown at an average annual pace of 2.8 percent since 2002, down from 4.4 percent during the previous five-year period.

    Output has dropped to a seven-year low of 3.12 million barrels a day as the state monopoly Petróleos Mexicanos fails to develop new reserves to offset dwindling production at Cantarell, the world's largest offshore field.

    Crude rose as high as $90.07 a barrel in New York last week. The 50 percent price increase from a year earlier pushed up the Canadian dollar 21 percent against its U.S. counterpart, while the Brazilian real gained 19 percent and the Norwegian krone strengthened 16 percent. Canada, Brazil and Norway all export oil.

    The $15.4 billion Petróleos Mexicanos investment plan this year covers only half what is needed to fully develop the country's oil and natural gas industry, said George Baker, who runs the energy research company Baker & Associates in Houston.

    Pemex, as Petróleos Mexicanos is known, also needs access to foreign companies' deep-water drilling technology to increase its reserves, said Baker, who has been analyzing Mexico for three decades.

    "Oil production in Mexico is declining and declining fast," said Alberto Ramos, a Latin America economist in New York with Goldman Sachs. "What is needed is a serious energy reform that would allow Pemex to partner with other companies."

    The peso will weaken 2.8 percent against the dollar by March, Ramos said. The slowing U.S. economy, which weighs on Mexican exports and migrant worker remittances, is also hurting the peso, he said.

    Calderón, who served as energy minister for eight months under his predecessor, Vicente Fox, has made no direct calls to end the 1938 ban on private oil ownership, said Sergio Méndez at Prudential Bank in Mexico City. Since taking office in December, the president has instead pointed out the shortcomings of the state-run industry, Méndez said.
    No One Knows Everything. Only Together May We Find The Truth JG

  2. #2
    AuGmENTor Guest
    I think this is a planned thing to push us on the Amero...

  3. #3
    simuvac Guest
    Tough call.

    The arguments against peak oil tend to rely on three things:

    1) state declarations of oil reserves are infamously unreliable
    2) the theory of abiotic oil
    3) the technological magic bullet

    1) is true, but could so many oil stats be "fixed around the policy"?
    2) is considered bogus by the vast majority of geologists, and goes against the fundamental principles of geology
    3) is possible, but who knows?

    In my opinion, there are too many demonstrable cases of states that have already experienced peak oil for the entire theory to be nothing but a ploy to bring about a NA currency. I think Mexico is running low.

  4. #4
    dMole Guest


    I can't remember the title, but there is a movie about how Cuba already transitioned off an oil-based energy (due to our country's bullshit 50-year emargo that didn't do Jack to 'ol Fidel and his family).

    It really caused some economic and health problems for the poor Cuban proletariat though...

    I've got about 300 existing US Patents and counting that are non-oil based energy tech or efficiency boosters (most going back to the 1880s to around pre-WW2, when everything got "classified" and suppressed), but the PTB won't let that shit hit the US economy...

  5. #5
    dMole Guest

    Cars are older than gasoline too

    FWIW, Isaac De Rivas invented the first automobile about 8 years before gasoline was invented- used to run on "town gas" or "water gas"= clean burning hydrogen...

  6. #6
    AuGmENTor Guest
    Quote Originally Posted by dMole
    FWIW, Isaac De Rivas invented the first automobile about 8 years before gasoline was invented- used to run on "town gas" or "water gas"= clean burning hydrogen...
    Got any links for that? I'd like to know more.

  7. #7
    dMole Guest

    Might be hazardous?

    Water fuel researchers tend to get their garages busted up and get bullets in their head from "robberies," but I think I already know AuGgie'd be bustin' some caps of his own. Keep a lookout for Suburbans with black tinted windows and 4 "government suits" in them!
    (website's mainly to sell his book, but I'd call it worthwhile- you won't find many other sources for some of these articles)
    (Roy McAlester is an AZ Engineering Professor who's been quietly driving around without gasoline for 16 years or so in his little D-50 pickup)

    I'm personally getting pretty tired of Al Gore and his "Green" buddies telling me about the engineering particulars of why the "hydrogen economy" will never work- grrrr.... They need to go do a little more homework (on Stanley Meyer and Daniel Dingle and others).

    I'm all for telling OPEC what they can do with all their messy crude though (my politics are errr- complicated, you could say).

  8. #8
    PhilosophyGenius Guest
    And you thought illegal immigration is bad now....

  9. #9
    dMole Guest

    Correction- not MY patents

    I didn't invent the 300+ patents- I physically have the PDFs for posterity. I've given copies of my research to some.

    Why re-invent the wheel? Read what's already existent first. and Gerry Vassilatos and the late Thomas Valone's books are pretty good places to start. Patents aren't the easiest reading for the non-technical though.
    Last edited by dMole; 10-24-2007 at 08:02 PM. Reason: Spelling

  10. #10
    AuGmENTor Guest
    Thats some neat shit on those links man...

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