Thread: Mexico's oil production collapsing

http://www.latimes.com/business/la-f...home-headlines

Mexico, the world's No. 5 producer of oil, depends on it to fund 40% of its federal budget. Officials last year siphoned $54 billion from the state petroleum monopoly Pemex to finance public spending. High oil prices have resulted in tax windfalls over the last couple years but economists warn of a pending shortfall.

The nation's major oil field, Cantarell, is declining rapidly because of age. Production is down nearly 15% through the first 10 months of the year — more than twice the rate of decline predicted by Pemex officials last year. The company's worst-case projections show production plummeting to about 520,000 barrels a day by the end of 2008 — a nearly 70% freefall from October's average output of 1.65 million barrels a day.

Calderon's predecessor Vicente Fox tried to lessen Mexico's dependence on oil revenue by expanding Mexico's value-added tax, which functions like a national sales tax, to food and medicine. That proposal was rejected by Congress and got Fox branded an enemy of the poor.

This is really bad news folks. 40% of the Mexican government's rev. comes from that oil. There is some speculation on other forums that Mexico could be a net importer by 2009-2010. That could mean a collapse of the government and a wave of illegal immigration like we have not seen yet. Of course this can all be fixed by a tax on soda right.

The wall may not be enough. I'm starting to think the FEMA camps are really for what they claim. "A massive wave of immigration".

Plus, most of that exported oil comes to....us.

All the more reason to get the illegals out and a wall built and armed.

Originally Posted by Crusader01

All the more reason to get the illegals out and a wall built and armed.

Yes, but the powers that be will have to wait until it gets much worse I fear. And if the government collapes it might just play into the North American Union... all around very bad. This is very bad news as it was not expected in the peak oil community and means thing might get really bad a lot sooner than even the pessimists thought.

Sounds like there is a King of Oil in Mexico too. Did Fox get some lessons on how to prevent production while a shortage looms. Let's manipulate the price of oil on the world market and drive it up so certain people in high places can make a buck. Mexico needs to build some refineries, just like America.

Price driven by supply and demand but if you don't produce enough to meet demand then you can force the price up.

Dixie

Fyi: one of the more 'valuable' reasons for the SPP/NAU is so that the conglomerates can get into mex and use our technology to suck up mex oil. The more 'energy' they can scoop up, the more powerful they become worldwide.

mex has no serious technology and has no way to get the oil out.

China must be sitting somewhere in the mix considering their ties to AMERICAN PORTS.

Did Foxy help to create this mess with some backroom deal? I wouldn't be surprised. Now mex is 'dependent' upon American & Canadian corp. technology.

Slick, real shrewd.

.

Originally Posted by Dixie

Sounds like there is a King of Oil in Mexico too. Did Fox get some lessons on how to prevent production while a shortage looms. Let's manipulate the price of oil on the world market and drive it up so certain people in high places can make a buck. Mexico needs to build some refineries, just like America.

Price driven by supply and demand but if you don't produce enough to meet demand then you can force the price up.

Dixie

It may be true that higher prices benefit the oil kings in Mexico that profit from it but the significant lose of revenue to the government might mean revolution. The people that profit from the oil are inextricably tied to the government and it is not in their interest to see that government change. If you think their is graft in the US oil industry you should take a look at Mexico. I can link other info on this developement if you like.

Originally Posted by 2ndamendsis

Fyi: one of the more 'valuable' reasons for the SPP/NAU is so that the conglomerates can get into mex and use our technology to suck up mex oil. The more 'energy' they can scoop up, the more powerful they become worldwide.

mex has no serious technology and has no way to get the oil out.

China must be sitting somewhere in the mix considering their ties to AMERICAN PORTS.

Did Foxy help to create this mess with some backroom deal? I wouldn't be surprised. Now mex is 'dependent' upon American & Canadian corp. technology.

Slick, real shrewd.

.

Yes! I like how you think!

However it seems the investment for secondary extraction has jacked up from 10B to 25B just to maintain production... would you invest in that?

Also, Cantrell has a "unique" geology which is a bit to technical to go into here but... I'll just say high depletion rates are expected, just not this soon.

Our politicians will be the first to get rid of illegals if the Mexican oil industy collapses. I think the oil is one of the major reasons why they are allowing the invasion.

From what I've been reading, our dollar is falling, and trade with China is so unbalanced, plus they lend us money for the war....China practically owns us.....if the dollar falls much more, they are predicting America will fall.....so who will fall first, Mexico or us?

Originally Posted by Cindy

Our politicians will be the first to get rid of illegals if the Mexican oil industy collapses. I think the oil is one of the major reasons why they are allowing the invasion.

Yes