Running just to stand still

CANTARELL, in the Gulf of Mexico, was once the world’s biggest offshore oilfield, holding over 35 billion barrels of the black stuff. Now, after nearly three decades, it is running out. At its peak in 2004 it produced 2.1m barrels of oil per day (b/d), making up 60% of Mexico’s total output. That figure has already fallen by more than 500,000 b/d and could fall by another 200,000 b/d by the spring.

This is a worry for both Mexico and the world. Although Mexico contains less than 1% of the world’s proven oil reserves, it is the sixth-largest producer. Its output of 3.1m b/d is well above that of Venezuela or Kuwait. And although oil no longer dominates the Mexican economy


Since its nationalisation in 1938, Mexican oil has been the preserve of Petroleos Mexicanos, a state monopoly. Pemex resembles a poorly run government ministry. Its past three chief executives have all been accused of corruption (though some of these allegations may stem from bureaucratic infighting). It must comply with onerous procurement rules meant to prevent graft, which in practice are merely a drag on getting things done.

This flawed behemoth is now in