Posted on 08/29/2016 2:53:37 PM PDT by Lorianne
These days, the trend is not Pemex’s friend. Mexico’s loss-leading, debt-swamped, state-owned oil giant company announced that in July it had imported 554,000 barrels of oil a day — its highest monthly volume of imports since public records began in 1990.
In total, two-thirds of all the oil Mexico consumed in July was imported — a staggering statistic for a country that until not so long ago was home to one of the largest oil fields in the world, the Cantarell. Pemex also acknowledged that its crude production fell a further 5% in July while its natural gas production shrunk 9%.
The export figures were just as ugly. In 2011, when the price of Brent crude averaged over $100, Pemex’s export revenues hit a historic peak of $49 billion, a monthly average of $4.11 billion. In the first quarter of 2016 the monthly average was just $893 million. That’s a plunge of 78%.
As Pemex’s exports dwindle, Mexico’s imports of oil and gas continue to grow. Petroleum accounted for two-thirds of last year’s $14.5 billion trade deficit, which was the widest since 2008. During the same year, Pemex managed to rack up $38.5 billion in losses, its biggest ever.
If anything, the company’s decline is accelerating. This could be bad news not only for Mexico’s fiscally challenged government, which has grown comfortably dependent on the once bountiful proceeds from the oil business, but also for many of Mexico’s biggest banks, which have lent vast sums to the oil major and its huge network of suppliers. As Moody’s warns, if Pemex’s financial health continues to deteriorate, it could be a major source of risk for the banking sector in the months and years ahead.
This is all happening at a time that Mexico’s economy is showing ominous signs of stagnation. In the second quarter, GDP fell 0.2%, on a drop in industrial output. At the beginning of the year its most important export sector, the automotive industry, began suffering the consequences of gradually softening demand, particularly in the U.S. On Tuesday, Standard & Poor downgraded the Mexican economy’s outlook from stable to negative as the country’s weak growth continues to disappoint.
SNIP
Hey Ford...how is that $billions factory in Mexico going to operate without reliable power...Carrier AC also.
Let them pay for their inefficiency and corruption.
What else can you expect from a country that needs to export its poverty to survive.
This is what happens when you just pump oil out of the ground and do little to no maintenance on the wells or explore for new reserves.
The Cantarell is almost totally producing brine now. It was preventable but that costs money.
My only regret is that we share a border with Mehiko.
They’ve been stupid-stuck on socialism for so long,
that I bet some Mexicans think that capitalism is when you never use lower-case letters when you write.
GET IT ?
/sarc
Looks like a good investment....
Now we understand why the prez of Mexico wants to meet with Trump. If Pemex is failing and the USA is their biggest customer and Hitlery hates oil and coal as fuels, then Trump could theoretically save the Mexican economy too. What a thought!
Yep. Polk, after winning the Mexican War, should have demanded the border to be right at the edge of the top of the Gulf of California, and then a straight diagonal line from there to just north of present-day Monterrey. That would have stopped all this crap that we are having now. Actually Eisenhower should have built a wall too.
Back in the ‘80s, there was an article in National Review about Pemex.
Said that Pemex was the only oil company in the world that doesn’t make a profit.
Meh hee co
3 idiots from Santo Poco run the entire governmemt.
Build this wall fast amigos!!!
Return the stolen oil fields to the Americans and Dutch, and production would soar.
More likely, it just would've moved "all that crap" a few miles further south.
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