Is this why U.S. gas prices are rising?
Mexico oil exports plummet
By Upstream staff
Mexican oil exports plunged 18.2% in April to levels unseen since 1990 outside hurricane seasons, in more grim news for a key economic motor relied on for a major chunk of government revenues.
Crude export volumes tumbled to 1.177 million barrels per day as yields at Mexico's aging Cantarell field continued to plummet, state oil monopoly Pemex said today.
Oil production declined 4.2% year-on-year to 2.642 million bpd in April, the fourth month in a row that it has been below a targeted level of 2.7 million bpd, according to a Reuters report.
Oil revenues are a key plank of Mexico's economy and the slide in exports was the latest gloomy data for a country already knocked into recession by a drop in US demand for its factory exports.
(More here.)
By Upstream staff
Mexican oil exports plunged 18.2% in April to levels unseen since 1990 outside hurricane seasons, in more grim news for a key economic motor relied on for a major chunk of government revenues.
Crude export volumes tumbled to 1.177 million barrels per day as yields at Mexico's aging Cantarell field continued to plummet, state oil monopoly Pemex said today.
Oil production declined 4.2% year-on-year to 2.642 million bpd in April, the fourth month in a row that it has been below a targeted level of 2.7 million bpd, according to a Reuters report.
Oil revenues are a key plank of Mexico's economy and the slide in exports was the latest gloomy data for a country already knocked into recession by a drop in US demand for its factory exports.
(More here.)
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1 Comments:
Mexican oil production has been declining for awhile but whatever happened to “Drill, Baby Drill” ?
Let’s ignore the question of imported oil and ask why the domestic production has decreased at all ?
Look at our neighbor to the West, North Dakota's oil patch had a record 98 active drill rigs in November 2008 (per Ron Ness, president of the North Dakota Petroleum Council.) By March, there were only fifty-one oil rigs were operating --- and each active oil rig represents about 40 direct jobs and 80 indirect jobs in the state.
ND may not be the biggest producer in the US, but there have been reductions in other states as well.
IF the “Drill Baby Drill” crowd was serious they would be clamoring for more domestic production while gloating that imports are down … but not so.
For the oil companies, it’s always been about managing profits not about where the production is done. According to the American Petroleum Institute, the May report indicated that US crude inventories dropped by 1 million barrels and gasoline by 2.9 million barrels. But not to worry that the oil companies are running out … they have oil sitting in tankers (100 million barrels) waiting for the price rise before they unload.
It’s always been about managing speculation not production capabilities.
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