[Tanada]

From looking at that report it appears that Mexico peaked in 2004, so how many here doubt that? Is the timeline too short to be sure they have peaked? I think if they found a megafield today and got it producing in record time they might be able to go higher, but I think it is more likely they are now firmly on the down slope. Coupled with incresing population and domestic consumption the first to feel it will have to be the countries buying exports, mostly the USA.

[Eli]

Well I think they are on the down slope for sure. Their only hope is in the deep water of the gulf. They are not going to find a big field Just south of Tijuana or something.

Another big problem is that they do not have the capitol to develop the deep water gulf. Are they going to have more money as their economy slides into recession?

This the problem with all the mega projects, right now is that they seem extremely cost prohibitive. In a recessionary environment they are going to seem absolutely insane.

[DantesPeak]

$this->bbcode_second_pass_quote('Eli', 'W')ell I think they are on the down slope for sure. Their only hope is in the deep water of the gulf. They are not going to find a big field Just south of Tijuana or something.

Another big problem is that they do not have the capitol to develop the deep water gulf. Are they going to have more money as their economy slides into recession?

This the problem with all the mega projects, right now is that they seem extremely cost prohibitive. In a recessionary environment they are going to seem absolutely insane.

[shortonoil]

DantesPeak said:

$this->bbcode_second_pass_quote('', 'Y')Es, costs are soaring per marginal new barrel obtained.

[DantesPeak]

$this->bbcode_second_pass_quote('shortonoil', '[')b]DantesPeak said:

$this->bbcode_second_pass_quote('', 'Y')Es, costs are soaring per marginal new barrel obtained.

[shortonoil]

DantesPeak quoted:

$this->bbcode_second_pass_quote('', 'S')ome 200 wells are going to be drilled this year in Chicontepec.

[nth]

$this->bbcode_second_pass_quote('Tanada', 'F')rom looking at that report it appears that Mexico peaked in 2004, so how many here doubt that?

[Twilight]

Because above ground factors make it less real.

[sirrom]

if the usa can't get oil from mexico,where will they get it from?

[fluffy]

$this->bbcode_second_pass_quote('sirrom', 'i')f the usa can't get oil from mexico,where will they get it from?

[sirrom]

$this->bbcode_second_pass_quote('fluffy', '')$this->bbcode_second_pass_quote('sirrom', 'i')f the usa can't get oil from mexico,where will they get it from?

[UncoveringTruths]

$this->bbcode_second_pass_quote('', 'M')EXICO CITY, June 29 (Reuters) - President Felipe Calderon said on Friday he expected Mexico's crude oil exports to slip further this year and next, underscoring the need for a fiscal reform to make the country less dependent on oil revenues.

"Starting in 2006, the volume of our oil exports has been falling at an alarming rate and from what we have observed up until now, this year and the next will be no exception," Calderon told a banking event.

[DantesPeak]

What is shocking is that this news has moved from a secret government report 20 months ago, to an unintended public disclosure in February 2006 of that report by the WSJ, to now a very public discussion of plunging Cantarell production. Times are truly desperate for Mexico – do they cut government spending to make the heavy investment in new oil fields, or do they finally bring in foreigners as investors who want to share in the profits?

Judging from available information, while Mexico is making substantial investment on maintaining and improving existing infrastructure, it appears to be lagging in spending to reach the full productive capacity of new fields.

For example, they gave a contract for 500 wells, but they need to drill 1000 wells per year.

$this->bbcode_second_pass_quote('', 'P')emex: Schlumberger Wins Chicontepec Oil Drilling Contract

June 28, 2007: 01:11 PM EST

VERACRUZ, Mexico -(Dow Jones)- Petroleos Mexicanos has awarded oil services firm Schlumberger Ltd. (SLB) a four-year contract to drill 500 wells in Mexico's Chicontepec oil region, a Pemex official said Thursday.

"There was a tender for 500 wells. Schlumberger bid with another company and they won that bid," Carlos Morales Gil, head of Pemex's exploration and production unit, told Dow Jones Newswires on the sidelines of an oil conference.

Schlumberger will conduct the drilling activities, while Ica-Fluor, a construction joint-venture between Mexico's Empresas ICA (ICA) and Fluor Corp. ( FLR) will provide infrastructure such as pipelines, he said.

"This will start soon, within a month and a half," Morales said.

Morales was unable to confirm the size of the contract, but an oil industry executive said the drilling and infrastructure costs are estimated at $1.4 billion.

A Schlumberger official present at the event declined to confirm or deny the contract win, referring any questions to Pemex.

[Eli]

This the funniest lien from that BS article about Calderon

$this->bbcode_second_pass_quote('', 'O')il exports have slid a further 4.4 percent from the 2006 average in the first five months of 2007 to average 1.714 million bpd. The declining volumes coincide with lower oil prices after the historic peaks of the last few years.

[shortonoil]

DantesPeak said:

$this->bbcode_second_pass_quote('', 'J')udging from available information, while Mexico is making substantial investment on maintaining and improving existing infrastructure, it appears to be lagging in spending to reach the full productive capacity of new fields.

For example, they gave a contract for 500 wells, but they need to drill 1000 wells per year.

[DantesPeak]

$this->bbcode_second_pass_quote('shortonoil', '[')b]DantesPeak said:

$this->bbcode_second_pass_quote('', 'J')udging from available information, while Mexico is making substantial investment on maintaining and improving existing infrastructure, it appears to be lagging in spending to reach the full productive capacity of new fields.

For example, they gave a contract for 500 wells, but they need to drill 1000 wells per year.

[DantesPeak]

$this->bbcode_second_pass_quote('', 'J')uly 11, 2007

Mexican Petroleum Loses Billions in Crude Oil Due to Sea Water Seepage

9 Jul - The seepage of water and salt at the Cantarell and Ku Maloob Zaap oilfields, the country's main producers of crude, led Pemex [Mexican Petroleum] to not produce 61.357 million barrels of petroleum over the past three years. The petroleum that was not produced has a value of US$3.85 billion at today's prices.

According to information that Reformarequested from Pemex Exploration and Production Division (PEP) through the Federal Institute for Access to Public Information (IFAI), during the aforementioned period the excess of water and salt compelled the parastate company to not produce an average of 42,000 barrels per day at Cantarell and 14,000 barrels per day at Ku Maloob Zaap. This situation has been documented since 2004, when water began to seep in at the two oilfields.

The PEP notes that, during 2004, 37,500 barrels of oil per day were not produced at Cantarell and 4,600 daily were not produced at Ku Maloob Zaap. In the year 2005 the figures were 33,800 and 7,900 barrels of crude per day, respectively. However, the largest figures were recorded last year, when the two oilfields cut back their production by 55,300 and 29,000 barrels of crude per day, respectively.

The seepage of sea water is caused by a drop in pressure at the production wells in mature oilfields. However, in this case the problem is significant because these active fields are responsible for 67% of the country's total production and together they produce 2.1 million barrels of crude per day.

Pemex has underscored that the drop in total production caused by this situation at these oilfields amounts to less than 1% in all cases and that it does not pose a serious problem.

The seepage of water and salt has caused a great deal of damage at oil wells, and thousands of barrels were not produced at Cantarell (13,688 barrels in 2004 and 20,185 in 2006) and at Ku Maloob Zaap (1,679 in 2004 and 10,585 in 2006).

[PeakingAroundtheCorner]

Holy shit. Not good. Not good at all.

[UncoveringTruths]

$this->bbcode_second_pass_quote('', 'J')uly 19 (Bloomberg) -- A Mexican guerrilla group that claimed responsibility for bomb attacks on natural gas pipelines owned by Mexico's state oil company this month said it acted ``in self defense'' in a new statement.

The group, the Popular Revolutionary Army, or EPR, said it is obligated to act against President Felipe Calderon's government because of its repression of popular movements. The group repeated its demand, made on July 10, that the government release two of its missing members.

``We are not criminals, and much less terrorists,'' the group said in its statement posted to a Web site yesterday used by guerrilla movements. ``But up against the latent death threats against our members and the government's fascist offensive against the entire popular movement, we are obliged to exercise the legitimate right of self defense.''

The group's statement suggests it may intend to make good on threats to continue its bombing campaign unless authorities release its members. The office of Mexico's attorney general said in a July 11 press release that no federal prison held the EPR members mentioned in a July 10 statement.