[shakespear1]

Can someone tell me why Mexico should rush to develop these reserves? If the price of oil doubled than the revenue stream s twice what it would have been before which translated to having an equivalent production two times higher at the old prices.

It seems a no brainer to me what to do in such a situation.

Take a siesta Gringo.

[Zardoz]

$this->bbcode_second_pass_quote('', '.')..10 billion barrels of crude oil.

[gg3]

Ah, but the point about it being in Mexico, is that any North American discoveries are good for North America.

If the USA was serious about foreign policy, we'd be looking to disentangle from the Middle East and stick to buying from friendly countries, or at least from those that are rational ideological competitors e.g. Venezuela, rather than from regimes that support people who get their jollies by flying planes into buildings.

The real problem with new large discoveries, is that they act psychologically to put off the day of reckoning, and discourage investment in e.g. nuclear, wind, and solar.

[rogerhb]

$this->bbcode_second_pass_quote('gg3', 'I')f the USA was serious about foreign policy, we'd be looking to disentangle from the Middle East and stick to buying from friendly countries

[Grimnir]

LA Times: Oil Find in Mexico Far From Success

$this->bbcode_second_pass_quote('', '
')But the undersea riches won't come quickly, easily or cheaply. Not only could it take a decade for the new field to begin producing, but officials also acknowledge that the undertaking could push Mexico's engineering and financial capabilities to the limit.

[linlithgowoil]

Why do people say that - defining it in how many days consumption it provides? It is nonsense. A field that size would produce for decades at impressive flow rates, so i've no idea why comparing it to how many days consumption it would provide. Its a bad idea and totally misleading - you dont seriously think you can pump 10 billion barrels of oil out in 119 days do you?



$this->bbcode_second_pass_quote('Zardoz', '')$this->bbcode_second_pass_quote('', '.')..10 billion barrels of crude oil.

[pup55]

http://peakoil.com/fortopic1518.html

This sounds like the same oil find that was "announced" in late 2004.

So, maybe the recent announcement is for internal political purposes. Fox is about due to run for re-election. Surely it is widely known that oil money plus money emailed from the US by Mexico's young men are what is propping up the Mexican economy.

The idea that Mexico's oil production is in decline is problematic politically, so Fox has to make a big production out of the "new find" and give people the idea that the stability of the Mexican oil industry is assured, even though it is probably on the edge of disaster, and this big find is probably unexploitable. Fox cannot be seen as having let the industry go into a state of decay or he will probably be thrown out. Of course, he will eventually face the music in 4 years when production is down 32%, but maybe by then he will think of something else.

[Ludi]

$this->bbcode_second_pass_quote('', '
')But the undersea riches won't come quickly, easily or cheaply. Not only could it take a decade for the new field to begin producing, but officials also acknowledge that the undertaking could push Mexico's engineering and financial capabilities to the limit.

[Leanan]

$this->bbcode_second_pass_quote('', 'W')hy do people say that - defining it in how many days consumption it provides?

[lorenzo]

Similar article here:
http://news.bbc.co.uk/2/hi/americas/4808466.stm

Oil provides 1/3rd of Mexico's state income, so it's a hugely important find in that respect. If the State spends this money well, more Mexicans will find it easier to increase their living standards, which means they can finally buy a car to burn some of that petroleum more quickly.

[frankthetank]

I just returned from a week in Mexico. I noticed public transportation is utilized by a large majority of the Mexicans that work in the hotels/constuction (i was in Cancun). I doubt very few can afford a car, let alone the gas.

The problem with this find/and others, is that its in the bathtub we call the gulf...and Mexicans saw what Wilma did to their star tourist destination. It can do the same to oil installations, if not built to high standards.

[Bleep]

HELLO? Mexico's Cantarell is NOT the world's second largest field.

Mexico's Cantarell IS the world's second FASTEST produceble field.

No deep water field will replace Cantarell's flow rate.

Peak Oil isn't "peak oil by volume" it's "peak oil production rates."

This is what people don't get. This is the #1 point I always find myself having to drive home.

Failure to meet demand is effectively a shortage.

Demand happens at a rate. Production must match it. Easy oil is over. Fast oil is over. Production rates are peaking. Not volume. Rates.

[NeoPeasant]

$this->bbcode_second_pass_quote('frankthetank', 'I') just returned from a week in Mexico. I noticed public transportation is utilized by a large majority of the Mexicans that work in the hotels/constuction (i was in Cancun). I doubt very few can afford a car, let alone the gas.

[Bleep]

$this->bbcode_second_pass_quote('NeoPeasant', '')$this->bbcode_second_pass_quote('frankthetank', 'I') just returned from a week in Mexico. I noticed public transportation is utilized by a large majority of the Mexicans that work in the hotels/constuction (i was in Cancun). I doubt very few can afford a car, let alone the gas.

[emersonbiggins]

$this->bbcode_second_pass_quote('linlithgowoil', 'W')hy do people say that - defining it in how many days consumption it provides? It is nonsense. A field that size would produce for decades at impressive flow rates, so i've no idea why comparing it to how many days consumption it would provide. Its a bad idea and totally misleading - you dont seriously think you can pump 10 billion barrels of oil out in 119 days do you?

[kochevnik]

Something is REALLY, REALLY rotten in the state of Mexico. Just months after publishing the huge depletion rate at the country's fastest producing oil well, the Mexican Presidente goes on the boob toob to announce, that, yes, all is well, we have found yet another very large oil field just like Cantarell so there is no need for any of your investor types to remove your funds from our great corrupt country.

So wonderfully convenient for them to find a 'replacement' at EXACTLY the same time the main field is becoming greatly depleted.

Absolute fucking bullshit - you'd have to be quite a sucker to believe this load of crap.

[seldom_seen]

The casual reader coming across this story will probably have a reaction like "Wow, that's good news. I think I'll buy that Dodge Dakota Supercab afterall."

full throttle to the cliff!

[Daculling]

Wait... check this out

Pemex contracted a private company to drill the well. The fastest way to get the oil out would be by Pemex forming alliances with companies that have the deep-water technology. However, current laws forbid private companies from exploration and production activities in Mexico except under contract to Pemex.

The Fox administration has been attempting to ease foreign investment restrictions in the state-run energy sector. But those efforts have been blocked in Congress.

So what they are saying is that foreigners will have to cross the border to do the work that Mexicans will not.

[Starvid]

This is the biggest find in 10-15 years, isn't it? The biggest since Kashagan?

How much of these 10-11 gigabarells are recoverable? 100% ?