Mexican oil output could drop sharply

Mexico’s huge state-owned oil company, Petroleos Mexicanos, or Pemex, may be facing a steep decline in output that would further tighten global oil supply and add to global woes over high oil prices, the online edition of the Wall Street Journal reported.

..An internal study reviewed by The Wall Street Journal shows water and gas are encroaching more quickly than expected in Cantarell, Mexico’s biggest oil field, and might cause output to drop precipitously over the next few years.

Currently, Cantarell produces 2 mln barrels of oil a day, or six of every 10 barrels produced by Mexico, and is the world’s second-biggest-producing field after Saudi Arabia’s Ghawar.

Forbes