Mexico oil output resumes decline in November

MEXICO CITY (Reuters) – Mexican oil production fell in November after two months of rising output as the giant Cantarell field pumped less and the troubled Chicontepec project again failed to replace lost capacity.

The country pumped 2.553 million barrels per day in November, 5.8 percent less than a year ago and a 49,000 bpd decline from October, data released on Thursday by state oil monopoly Pemex [PEMX.UL] showed.

Steadily declining output from the world’s seventh-largest producer has contributed to concerns that diminishing supply from mature basins will make it even harder for the world to meet growing demand from emerging oil consumers, one of the key factors that underpin long-term oil investment.

It is also causing growing headaches for Mexican policymakers who rely on revenues generated by crude exports to fund around a third of the federal budget.

Although officials say they have come to grips with the dramatic production decline at Cantarell that has sent Mexican output tumbling by nearly a quarter since peaking in 2004, investors remain skeptical given Pemex’s long track record of failing to deliver on promised production stability.

Reuters