Mexican Company Predicts End of Oil

canis_lupus

Seems to me if they mean "seven years" they really mean "pretty $@$% soon...anybody have any suggestions?"

grink1tt3n

eastbay

'... oil reserves will run out in seven years.'

Of special interest to the motorists in the USA would be Mexico's oil 'exports'. The article refers to 'oil reserves', but it doesn't estimate the all important point when the production decline line finally crosses the domestic useage line. That's when exports reach zero, meaning that's when Mexico's government takes a revenue cut of somewhere around 60% compared to this year. It seems as though that magic moment should occur quite a bit earlier than seven years from now. Maybe two or three years???

It's interesting to speculate about what will happen to Mexico. There is no possible optimistic scenario.
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Cobra_Strike

In Matts 'bug out now?' thread someone said they felt we have two years...I doubt it.

There is likely to be demonstrated reductions in production by the end of the year.

7 years to no production...10% decline *might* even be a little bullish.
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jdmartin

Whoah!

My first thought is maybe this is Pemex's way of trying to force the hand of the Mexican Gov't to make some infrastructure/research investments instead of siphoning off everything. Or a ploy to shock the market, so that the price becomes higher - after all, their main customer isn't going to quit buying oil because the price went up, unlike some other countries elsewhere.

On the other hand, maybe they see the handwriting on the wall. It seems odd that information of that nature wouldn't be more of a state-secret, to be shared with the Mexican Gov't first, than to be faxed over to Wall Street..
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After fueling up their cars, Twyman says they bowed their heads and asked God for cheaper gas.There was no immediate answer, but he says other motorists joined in and the service station owner didn't run them off.

frankthetank

Cobra-

I think that was me. I might have to review my options!

Where will the US steal/i mean get the difference from? No wonder we want into Iran/Venezuela. Also no wonder why they want a fence up so bad down there, those Mexicans already have it tought, wait until the oil money dries up (i'm guessing the average Mexican sees very little, but still).
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Starvid

Remember, oil is fungible. It doesn't matter who exports to whom. It's a global market and all importers will be hurt the same.
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Peak oil is not an energy crisis. It is a liquid fuel crisis.

joewp

Starvid

Now, that's old thinking.

The relevant question is: where the heck is demand going to be destroyed? Very Happy

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Peak oil is not an energy crisis. It is a liquid fuel crisis.

Chesire · Heavy Crude Joined: Jul 13, 2007 Posts: 267

Starvid

At least we know what we are going to do with all the Mexicans who starve to death.

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Peak oil is not an energy crisis. It is a liquid fuel crisis.

IrrationalExuberanceMonky · Heavy Crude Joined: Jul 20, 2007 Posts: 107

"Even if heavy investments were made now..."

About as much chance of that happening as Hugo Chavez having a round table with George Bush and the late Milton Friedman on Exxon acquiring PDVSA. Smile

NOC cash cows, gotta love 'em. Rolling Eyes

Starvid