[DantesPeak]

Sweet dreams:


$this->bbcode_second_pass_quote('', 'P')emex Expects Peak Chicontepec Output of 470,000b/d
BNamericas Wednesday, August 22, 2007

Mexican state oil company Pemex expects its Chicontepec oilfield in Veracruz and Puebla states to reach peak production of 470,000b/d in 2014, newspaper El Norte reported, citing Pemex sources.

The field produced 23,000b/d in the first six months of 2007, but Pemex is hoping the field will ultimately help offset the natural decline of the Cantarell field, which produces roughly half Pemex's crude output.

With this goal in mind, Pemex aims to invest 164bn pesos (US$14.7bn) in Chicontepec in


2008-17, with annual investment hitting a peak of 26.2bn pesos in 2011.

The first five years of investment are expected to total 114bn pesos, with the second five years reaching 48.8bn pesos.

A consortium led by US oilfield services company Schlumberger (NYSE: SLB) won the first Chicontepec service contract in 2003, which initially featured a 200-well drilling program. Schlumberger recently signed a US$1.4bn contract for the drilling of 500 wells on the field.

Pemex estimates Chicontepec has probable reserves of 8.70Bboe, the paper reported.

[DantesPeak]

Breaking news:

$this->bbcode_second_pass_quote('', 'M')exico's Pemex Reports Explosions At Veracruz Pipelines

DOW JONES NEWSWIRES
September 10, 2007 8:33 a.m.

MEXICO CITY (AP)--Several explosions ripped apart pipelines in southern Veracruz owned by Mexico's state oil monopoly early Monday, the company said in a statement. There were no injuries.

Officials at Mexican state oil monopoly Petroleos Mexicanos, or Pemex, said they believed the explosions were sabotage.

[UncoveringTruths]

$this->bbcode_second_pass_quote('', '`')`It's apparent that these acts are deliberate and orchestrated,'' Fidel Herrera, governor of Veracruz, said in an interview with Mexico-City-based Radio Formula.

Herrera said 12,500 people have been evacuated to shelters.

The company has controlled four fires and is working to reestablish the supply of hydrocarbons, Pemex said today in an e- mailed statement. Pemex hasn't had any reports of injuries from the explosions that took place at 3 a.m. New York time.

Two of the blasts occurred in different areas of a 48-inch natural-gas pipeline, with a third occurring on a separate gas line, Pemex said. Two other explosions damaged a 30-inch gas line and a liquid-propane pipeline. The sixth blast ripped into an intersection where those two pipelines intersect with a 30-inch oil pipeline. Four of the six explosions caused fires, Pemex said.

The company didn't have information on the volume or number of customers affected, Carlos Ramirez, a Pemex spokesman, said in an e-mail.

[NEOPO]

$this->bbcode_second_pass_quote('', 'M')EXICO CITY - Six explosions believed to be the result of sabotage ripped apart natural gas pipelines for Mexico’s state oil monopoly early Monday, the company said. There were no reported injuries.

Mexican state oil monopoly Petroleos Mexicanos, or Pemex, issued a statement saying it believed the explosions, which forced the evacuation of 12,000 people, were deliberate.

It said the six blasts at about 2 a.m. (3 a.m. ET) caused four fires. At least five pipelines were affected.

[strider3700]

And on this news oil and gasoline are down natural gas is up a tiny fraction at the moment.

Reality and the markets have nothing to do with each other

[DantesPeak]

$this->bbcode_second_pass_quote('strider3700', 'A')nd on this news oil and gasoline are down natural gas is up a tiny fraction at the moment.

Reality and the markets have nothing to do with each other

[Troyboy1208]

OPEC has repeadedly said there is more than enough crude on the market. We are drowning in the stuff...no worries things are peachy Its the refineries that are keeping prices high...bottlenecks and the like

[DantesPeak]

No petrol, no problemo PEMEX says:

$this->bbcode_second_pass_quote('', '
')Pemex Says Pipeline Explosions Won't Affect Crude Exports

DOW JONES NEWSWIRES
September 10, 2007 12:21 p.m.

MEXICO CITY (Dow Jones)--A series of explosions Monday on pipelines run by Mexican state oil company Petroleos Mexicanos won't affect the country's crude exports, a company spokeswoman said.

Six explosions at valve stations in the Gulf coast state of Veracruz, which Pemex said it believed to be the result of sabotage, affected several natural gas pipelines and an oil pipeline.

A Pemex spokeswoman said the damage to the oil pipeline wouldn't affect exports, but could affect crude deliveries to the Pemex refineries in Tula and Salamanca, in central Mexico.

The spokeswoman said Pemex is reviewing inventories at its refineries, and that it's too early to say whether they will be affected.

Pemex exports about 1.7 million barrels a day of crude oil, mostly from the Gulf ports of Dos Bocas, Pajaritos and the offshore terminal at Cayo Arcas.

[sylviah]

I don't get it. Why is this not all over the news? Why has the price of oil gone DOWN today? Is Mexico our second-largest importer or not? Does anybody actually believe that this won't affect their exports?

Ok, I think I can answer my own questions.

I guess this really won't affect their exports, just as Cantarell crashing hasn't really affected their exports either. I guess the export-land model doesn't hold entirely true for countries that are willing to starve their own people before they stop supplying the USA with oil. Guess it really helps that the current "legitimate" government of Mexico is so pro-Bush. And that Bush has recognized the current government as legitimate, of course.

Basically, I guess we've done a good job of quietly starving our neighbors to the south so far, and the markets and MSM and powersthatbe are pretty convinced that we can keep it up.

Too bad for them the Mexican people are starting to get wise, eh?

[Eli]

I think the reason we are not seeing more of a market reaction is because of the general economic sentiment. The markets got word from the Fed that was very recessionary, which would traditionally bring down oil consumption.

[Twilight]

If they need the foreign cash badly enough, they could force their population to absorb any shortfall, out of sight. Maybe the oil markets are confident this is the most likely outcome.

[cube]

$this->bbcode_second_pass_quote('Eli', 'I') think the reason we are not seeing more of a market reaction is because of the general economic sentiment. The markets got word from the Fed that was very recessionary, which would traditionally bring down oil consumption.

[UncoveringTruths]

$this->bbcode_second_pass_quote('', '`')Main Arteries'

``These pipelines are the main arteries of supply to Mexico City and the surrounding areas,'' Shields said.

The explosions caused natural gas for October delivery to rise, said Michael Rose, trading director at Angus Jackson Inc. in Fort Lauderdale, Florida. The price climbed 11.4 cents, or 2.1 percent, to $5.615 per million British thermal units at 12:40 p.m. on the New York Mercantile Exchange. The price earlier touched $5.703.

``The market is on edge, everybody is short and whenever anything happens we'll go up,'' Rose said.

Pemex is the only supplier of natural gas under Mexican law. The company, which generates tax revenue equal to almost 40 percent of federal spending, will require manpower and funds to repair the damage at a time when it is struggling to slow a decline in oil production that began in 2004. During the first seven month this year, Pemex produced an average of 3.16 million barrels per day, down from 3.38 million barrels per day in 2004.

[frankthetank]

Oil @ 78.26 on 321energy. Looks like the message got through. Will be interesting to see if these were accidents or the result of sabotage or just crappy infrastructure falling apart (what else is new).

[DantesPeak]

$this->bbcode_second_pass_quote('UncoveringTruths', '')$this->bbcode_second_pass_quote('', '`')Main Arteries'

``These pipelines are the main arteries of supply to Mexico City and the surrounding areas,'' Shields said.

The explosions caused natural gas for October delivery to rise, said Michael Rose, trading director at Angus Jackson Inc. in Fort Lauderdale, Florida. The price climbed 11.4 cents, or 2.1 percent, to $5.615 per million British thermal units at 12:40 p.m. on the New York Mercantile Exchange. The price earlier touched $5.703.

``The market is on edge, everybody is short and whenever anything happens we'll go up,'' Rose said.

Pemex is the only supplier of natural gas under Mexican law. The company, which generates tax revenue equal to almost 40 percent of federal spending, will require manpower and funds to repair the damage at a time when it is struggling to slow a decline in oil production that began in 2004. During the first seven month this year, Pemex produced an average of 3.16 million barrels per day, down from 3.38 million barrels per day in 2004.

[Cobra_Strike]

If PEMEX is so interested in exports would it be beneficial to them to kill pipes servicing their cities?

[Twilight]

$this->bbcode_second_pass_quote('Cobra_Strike', 'I')f PEMEX is so interested in exports would it be beneficial to them to kill pipes servicing their cities?

[Denny]

For Pemex, blaming it on sabotage buys them breathing time to figure out the real cause and, if necesary, cover that up.

Just like the brush fires in Greece recently, or California of a year ago, its easier to pin blame on the person who made the last error, or even intentional act of vandalism, in palce of focusing on the bigger root problem, as that root problem is too scary for governments or big companies to consider and deal with.

[DantesPeak]

Well, rebels are claiming responsibility, and now they say there were 6 explosions affecting 12 pipelines.


www.presstv.ir

knbc.com

$this->bbcode_second_pass_quote('', 'S')ept. 10, 2007, 5:28PM
Mexican Rebels Claim Pipeline Attacks

VERACRUZ, Mexico — A shadowy leftist guerrilla group took credit for a string of explosions that ripped apart at least six Mexican oil and gas pipelines Monday, rattling financial markets and causing hundreds of millions of dollars in lost production.

The six explosions could be seen miles away, and set off fires that sent flames and black smoke shooting high above the Gulf coast state of Veracruz.

At least a dozen pipelines, most carrying natural gas, were affected, said Jesus Reyes Heroles, the head of Mexico's oil monopoly Petroleos Mexicanos, without providing specifics.

He said there would be hundreds of millions of dollars in lost production and about nine states and the capital, Mexico City, would be affected.

"It is a big blow," he said. "You can't store natural gas or transport it by truck."

[Eli]

fudge.