Jason Brudereck: Oil production nears terrifying drop-off

Energy consultant Michael Lynch argued last week in an op-ed in The New York Times that better extraction methods will postpone the production peak, which is significant since the economy runs on oil.

If he’s correct, it means something more alarming: the drop-off in production after the peak will be that much steeper because there will be less oil left.

We’re seeing this in Mexico now, where oil production fell almost 8 percent in July. Production at one field, Cantarell, is collapsing.

This means the Mexican government’s income – 40 percent comes from taxes on oil sales – is collapsing.

What will this mean to that country’s already inadequate health and police services?

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