Posted on 11/22/2008 9:15:52 PM PST by St. Louis Conservative
MEXICO CITY (AP) — America's third-largest oil supplier has exported 17 percent less crude this year.Mexico's state-owned Petroleos Mexicanos company says daily production through October averaged 2.8 million barrels, down nearly 10 percent from the same period last year. Pemex says production has dropped by a third this year at Mexico's main Cantarell oil field. An energy reform package approved by Mexico's Congress last month aims to reverse declining production by giving Pemex more leeway to hire private companies and devote more revenue to explore for oil.
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Why wouldn’t this be a depletion issue?
First clue: Mexico’s state-owned
Socialisim, aint it grand.
Nuff Said.
This IS a depletion issue.
They expect that Mexican oil will drop at a 10 to 15% rate per year.
So whats BOs answer? No drilling, no way.
They are depleting their proven reserves. They do not explore for new ones because they are not managed well and the revenues are diverted elsewhere. U.S. companies have been making huge discoveries in the Gulf of Mexico in the past 5 years. The Brazilians have discovered two massive new fields in the past 3 years. The oil is there, it just takes substantial investments to find it.
the people of mechico have never wanted foreign investment in their oil co .
they think it would lead to foreign control.
They cannot reach deep water fields (where the new discoveries are being made) with private oil company capital and/or expertise. Nationalized production doesn’t work. Venezuela is in a similar boat.
“with” = “without private capital”....correction.
I am pretty sure Mexico sold nearly its entire production for next year at $60/bbl
“This is the problem with state-owned oil companies.”
—
Look at any state-owned enterprise and compare its productivity pre- and post- nationalization. In every case, productivity falls precipitously. After all, once incentives are removed, why put out any extra effort beyond the minimum? That’s the story of Communism in every Communist country.
That’s also the reason all these failed Commie regimes eventually begin to offer the poor (everybody) the right to practice limited capitalistic endeavors (e.g., little roadside shops) which always succeed beyond anyone’s expectations. Anything to get some money back into the system, even capitalism.
“Atlas Shrugged” should be required reading for all the thugs, Hugo Chavez, Hugo Putin, Hugo Obama, etc.
They don’t care about the consequences. It is all about “fairness”... Just ask Obama...
Incompetent and corrupt socialists, supported by the squalid majority of idiot voters there (even worse than our 52% idiot socialists here), do not allow PEMEX to re-invest sufficiently to provide for new exploration and production, or for newer technologies to maximize production in current declining fields.
Oil imports from Mexico may decline but cocaine imports will continue strong, perhaps because the drug business is more private enterprise oriented.
Mexico is a crap hole and without a serious revolution, will never get better.
they think it would lead to foreign control.
They sound like a lot of Americans -- quite a few of them can be found on FR.
lol!
si.
Well, then in the words of Jeremiah Wright, Mexico’s chickens will come home to roost. They won’t be able to sustain their social welfare programs and fund government unless they expand their reserves. The only way that can be done in my view is if they bring in private oil companies.
They are depleting their proven reserves. They do not explore for new ones because they are not managed well and the revenues are diverted elsewhere.Falling oil prices are not doing anything to help in that matter.
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