Mexico's big oil problem

[ALS]

EIA says Mexico will have to start importing oil by 2020.

Steve Hargreaves - CNN - August 17, 2012

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.

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. ... [Read More]

[herm]

"years of underinvestment" is what happens when you nationalize the industry, same thing that is happening to Venezuela.. but it had to be done, the 99% were getting ready to revolt and politicians like to pamper.

I better stop now before I start ranting

interesting article here about oil theft in Mexico:

http://fuelfix.com/blog/2012/08/17/p...troleum-theft/

"The pilfering of Mexico’s petroleum wealth by criminal gangs and their cronies inside the energy industry continues to spike despite years of effort and many millions of dollars spent to curtail it.

Pemex, the Mexican government’s hydrocarbon monopoly, reports that theft of crude oil and petroleum products jumped some 18 percent in the first half of this year compared to the same period in 2011, totaling more than 1.8 million barrels worth.

The rising theft also comes as Pemex presses for a jury trial in U.S. federal court against a number of Houston-linked companies for either knowingly or unknowingly trading in stolen petroleum products that have found their way into the United States, and specifically Texas, since 2006."