Time Running Out for Energy in Mexico

WASHINGTON — Mexican Energy Secretary Georgina Kessel’s warning to the Mexican Congress last week sounded ominous: If legislators did not approve reforms within the oil sector, the country would suffer a “severe energy crisis” within a decade.

That’s probably an understatement.


Mexico’s oil production is rapidly declining. The Cantarell oil field, one of the world’s largest, is responsible for almost two-thirds of Mexico’s production. In 2004, it brought up 2.1 million barrels a day; today it produces only half that. Unless new sources are found, Mexico — up until last year the second-largest supplier to the United States — will become a net oil importer by the year 2018.

For some countries, being a net oil importer is no big deal. But for Mexico, oil represents the single largest amount of revenue for the federal government — about 40 percent. This looming “energy crisis” would be felt more than just at the pump. It would be across the board, impacting financial, social and political sectors as well.

Washington Post