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Page added on March 31, 2017

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Down 10%, Mexico Oil Reserves Gone in 9 Years Without New Finds

Geology
  • Record-low drilling activity for 3 years seen as the cause
  • Foreign explorers now working offshore offer boost by 2024

Mexico’s existing oil reserves are dwindling so fast the country could go dry within nine years without new discoveries.

That’s the message from the National Hydrocarbons Commission, which said Friday that the reserves fell 10.6 percent to 9.16 billion barrels in 2016, from 10.24 billion barrels a year earlier. Once the world’s third largest crude producer, Mexico’s proven reserves have declined 34 percent since 2013.

The decline in proven reserves is driven by record-low drilling activity the last three years, according to CNH Commissioner Hector Acosta. State-owned producer Petroleos Mexicanos drilled 21 wells last year, a record low, after averaging 31 per year since 2010.

“If there isn’t drilling, it is going to be difficult to incorporate new finds,” Acosta said. “The production figures and indicators that we are observing, tell us that there are flaws in the drilling activities being carried out by Pemex.”

The diminished production comes from a combination of reduced investment and the continued maturation of fields, said Cesar Alejandro Mar, Adjunct Director of Reserves. He set 8.9 years as a time frame for the reserves to run out if no new exploration occurs.

Pemex, meanwhile, said in an e-mailed statement that it added 684 million barrels of probable crude to the reserves last year, and “will continue working to increase reserves and restitution rates to higher levels.”

Monopoly End

Mexico ended Pemex’s production monopoly in 2013 to let private operators develop oil in the country for the first time since the 1930s. Production is set to fall below 2 million daily barrels this year, the lowest levels since 1980, Pemex has said. Overall, crude production has declined every year since 2004.

Given increased crude development activity anticipated in the deep waters of the Gulf of Mexico by private producers, the country’s production is forecast to climb to 3.4 million barrels a day by 2040, according to a report by the International Energy Agency.

Italian producer Eni SpA, which won rights to develop a Gulf of Mexico field in 2015, recorded the country’s offshore find by a foreign company in more than seven decades on March 23.

“Mexico isn’t the only country that has seen its reserves diminished during a difficult time for the industry worldwide,” said Juan Carlos Zepeda, a CNH Commissioner, when the numbers were released. “International oil companies are just now starting to return to an improved investment rhythm.”

Bloomberg



31 Comments on "Down 10%, Mexico Oil Reserves Gone in 9 Years Without New Finds"

  1. rockman on Fri, 31st Mar 2017 10:21 pm 

    “Mexico isn’t the only country that has seen its reserves diminished during a difficult time for the industry worldwide”. Mexico’s production started down the toilet when oil prices were at record highs. And 21 wells proved up 600+ million bbs of new reserves??? Or about 30 million bbls/well??? Not very likely.

    There’s something much more important for the rest of the world the Mexico running dry X number of years down the road: it recently became a NET FOSSIL FUEL IMPORTER. IOW Mexico no longer supplies the world with energy…t has already become an energy black hole. And more so with NG then oil.

  2. Plantagenet on Fri, 31st Mar 2017 11:42 pm 

    Oil Production is growing rapidly in Texas but just across the border in Mexico its collapsing?

    Obviously the Mexicans are doing something wrong.

    Cheers!

  3. Midnight Oil on Sat, 1st Apr 2017 12:11 am 

    All Mexico needs to do is annex Texas and all will be fine. This can be accomplished peacefully by a referendum. With the majority of Texas residents from South of the Border, the outcome is all ready determined.
    Viva a la Mexico, Gringo go home!

  4. Cloggie on Sat, 1st Apr 2017 1:58 am 

    All Mexico needs to do is annex Texas and all will be fine. This can be accomplished peacefully by a referendum. With the majority of Texas residents from South of the Border, the outcome is all ready determined.

    Let me guess… you are a Mexican/Latino of the La Raza/Atzlan variety?

    Viva a la Mexico, Gringo go home!

    Doesn’t sound very peaceful to me. And remember Midnight Owl: hands off from our Europeans (or “Whites” as they are known in North-America), otherwise Europe gets angry and we’ll send another Pizarro/Cortez and an army of 4 million.

    #DemographyIsDestiny
    #DiversityIsNotOurStrength
    #DiversityIsLossOfSouthWest

    http://tinyurl.com/mhwptf3

    The new (old) Mexican, very environmentally friendly:

    http://tinyurl.com/mtfusa9

    Seriously, it looks like Mexico could become the new Venezuela soon. On the other hand, if you don’t look, you will not find.

  5. observerbrb on Sat, 1st Apr 2017 4:17 am 

    Sorry, I meant to post it here:

    BW Hill right again.

  6. Davy on Sat, 1st Apr 2017 5:23 am 

    “All Mexico needs to do is annex Texas” At least from the point of view of energy, Texas needs a Trump wall on all sides north, south, east, and west. There fixed that.

  7. Stephen on Sat, 1st Apr 2017 7:50 am 

    Peak Oil is Real and we need to move fast on adapting to a new reality of life.

  8. Midnight Oil on Sat, 1st Apr 2017 8:43 am 

    Sorry, I meant to post it here:
    BW Hill right again
    You forgot to add the names
    Bensen, Buster, Bozo, Bronson and Marmico.
    What a team!

  9. rockman on Sat, 1st Apr 2017 8:54 am 

    Cloggie – You need to forgive MO. He’s as ignorant of the illegals dynamic in Texas as many due to the biased reporting by the MSM. Countless reports of folks supporting the illegals. In realities the Hispanic Texas citizens or more upset then the Eurotexans. LOL. But seriously. Especially true for those in S Texas. Huge negative impacts on the Hispanic communities in the Rio Grande Valley. All the jobs lost to the illegals were jobs from the Hispanic population. Employments was always tough in S Texas. Social services for the citizens in the Valley weren’t anything to brag about and the illegals have made it worse. Other then some local stories you’ll never see national coverage.

    OTOH the Eurotexans typically don’t have a problem with the illegals since they actually benefit from them. Especially small business owners that get the cheap labor since they can avoid hiring citizens.

    Which makes me wonder what’s going on in your part of the world: is your refugee influx affecting employment citizens on the low end of the pay scale.

  10. Cloggie on Sat, 1st Apr 2017 9:21 am 

    Like you say, business usually likes immigration, the settled folks not so much.

    In Holland it is very common these days that legal folks from our former Suriname colony vote for the anti-immigration party PVV under the motto “we’re in and you should remain out, not to spoil things for us”.

    No ethnic group likes to be dispossessed. It looks like the armies of the past got it all wrong; it is a false strategy to stampede into a country with an army all at once. It makes more sense to be patient and slowly trickle into a country and apply for asylum instead and let the invaded pay for the privilege of being invaded (and gradually taken over).

    #BoilingFrogPhenomenon

  11. Davy on Sat, 1st Apr 2017 9:23 am 

    Rock, Mexicans don’t come here to the Ozarks because life is better in many parts of Mexico than it is here. You know what is funny many Ozark poor would not live anywhere else.

  12. Cloggie on Sat, 1st Apr 2017 9:30 am 

    You know what is funny many Ozark poor would not live anywhere else.

    Not difficult to see why:

    http://tinyurl.com/n4s63wf

  13. rj on Sat, 1st Apr 2017 9:40 am 

    I’m starting to get the wall thing.

  14. Midnight Oil on Sat, 1st Apr 2017 9:44 am 

    I’m seeing the tunnels….

  15. Midnight Oil on Sat, 1st Apr 2017 9:48 am 

    BUT Rockman…how do YOU know so much?
    Did you not disclaim your Texas roots?
    Seems to me you are just another ignoramuse blowhard spilling opinionated BS from both ends of the pipe..as usual from you.

  16. Mark Ziegler on Sat, 1st Apr 2017 9:55 am 

    How long does it take to design and build a fast and comprehensive rail system?
    About 9 years?
    https://www.youtube.com/watch?v=sE4A0nPjyqQ

    Look! No maglev needed.

  17. Ghung on Sat, 1st Apr 2017 10:00 am 

    MO asks; “BUT Rockman…how do YOU know so much?
    Did you not disclaim your Texas roots?”

    I thought Rock’s roots were in Louisiana. Probably a Coon Ass 😉

  18. Midnight Oil on Sat, 1st Apr 2017 10:09 am 

    Louisiana? Really, that place don’t count at all. Isn’t that where “Swamp People” live?
    Well, maybe Rockman can explain to us all how to wrestle alligators, snag some snapping turtles, or survive a shaker bite or mosquitoes onslaught.
    Come on Rockman I find that more to your expertise.

  19. Davy on Sat, 1st Apr 2017 10:27 am 

    Mark, your trains is exactly what we don’t need for what is ahead. This is what we need:

    http://tinyurl.com/klyptrk

    Preferably burning biomass or a renewable generated liquid fuel. An electric version could be a version with overhead wires then wind and or solar powered.

  20. Kenz300 on Sat, 1st Apr 2017 10:58 am 

    Seems like we need to speed up the transition away from fossil fuels and to safer, cleaner and cheaper wind and solar power.
    Fossil fuels cost more and are doing environmental damage.

    Utility-scale Solar Has Another Record Year in 2014
    http://www.renewableenergyworld.com/rea/news/article/2014/12/utility-scale-solar-has-another-record-year-in-2014

    Solar and Wind Provide 70 Percent of New US Generating Capacity in November 2014
    http://www.renewableenergyworld.com/rea/news/article/2014/12/solar-and-wind-provide-70-percent-of-new-us-generating-capacity-in-november-2014

  21. rockman on Sat, 1st Apr 2017 11:12 am 

    Ghung – “I thought Rock’s roots were in Louisiana. Probably a Coon Ass” A brief Rockman bio: born in Detroit, raised in S La, lining in Texas. And with Hispanic (Venzualian)/black/Irish heritage. The Vierra name was corrupted when my mother married an Irish Yankee, a merchant marine engineer.

    We’ll let MO absorb that for a while. LOL. Oh, something else to confuse him further: when I lived in La and worked for Mobil Oil prior to moving to Texas I was registered Democrat. And member of the Sierra Club where I used my background to help them fight a nasty polluter…Dow Chemical.

    Even more confusing for some now, eh? LOL.

  22. Midnight Oil on Sat, 1st Apr 2017 11:17 am 

    Hun, than Rockman knows what the bottom of the barrel means after all, LOL.
    It don’t get any better than this, but it will! Promise.
    I’ve digested and time to pitch a loaf.

  23. Apneaman on Sat, 1st Apr 2017 11:54 am 

    Hair clog, how come you never told us about your grandson before?

    Dutch guy all geared up for a Sydney summer misreads ticket info and ends up in Canada

    “What’s the silliest mistake you’ve ever made?”

    “How about ending up in the wrong bloody country?

    That’s what happened to Dutch student Milan Schipper, who was looking to do a little bit of backpacking up and down the Aussie coast before knuckling down at uni.

    Instead, he ended up in Canada in the middle of a snowstorm.

    It turns out there are two Sydney airports.

    One of them is in Australia.

    The other is in the Canadian province of Nova Scotia.

    And what do you know, Schipper accidentally bought tickets to the wrong destination.

    No wonder they were 300 bucks cheaper than all the other tickets for sale!”

    http://pickle.nine.com.au/2017/03/31/14/57/dtuch-guy-books-ticket-to-the-wrong-sydney

    Stupidity and intelligence have a heredity component, but it’s on the individual/familial level – not by race. Do they give you a special cognitive disability cheque every month over there in the Dutch welfare paradise?

  24. Boat on Sat, 1st Apr 2017 1:58 pm 

    Ape,

    You recently had a post saying 1 million humans had to relocate from the coast. That was a great bit of information in my view. Now find me some links that tell me when that number grows to like 5 million per year. How long will it take to displace 20 million a year.

  25. GregT on Sat, 1st Apr 2017 3:30 pm 

    Boat,

    According to Oxfam, 200 million people per year are expected to be on the move due to climate change by 2050.

    http://therevolutionmovie.com/index.php/open-your-eyes/climate-change/impacts/

  26. makati1 on Sat, 1st Apr 2017 5:56 pm 

    GregT, I think they are wrong on the low side. IF we are still here in 2050, the migration will be closer to 1 billion on the move around the world.

    All it would take to move Boats 5 million would be the San Andreas fault releasing like before and most of the West Coast from Santa Barbara to Mexico would be on the move. That one earthquake could set off the others waiting to go and the whole West Coast of the US could be on the move inland. 10 million? 20? The current population of those three states is about 50 million.

  27. onlooker on Sat, 1st Apr 2017 6:06 pm 

    “GregT, I think they are wrong on the low side. IF we are still here in 2050, the migration will be closer to 1 billion on the move around the world.” When it gets to affect that many or more, I think not too many will be moving. More like being struck down by the four horsemen. Disease, War, death and famine

  28. Apneaman on Sat, 1st Apr 2017 6:22 pm 

    Boat what makes you think info will be available to you or anyone at that point? Especially in your country – anti science dark ages America. Also, sea level can happen very quick from what are known as melt water pulses. Again, y’all Americans won’t know since your Cheeto is in the process of dismantling all the data collecting agencies and devices (satellites, etc). You’ll know when the shipping channel is rendered useless. Keep stocking up on your 13 cent store brand Raman noodles.

    Greenland’s coastal glaciers are ‘doomed’ after hitting tipping point 20 years ago

    Much of the ice on the fringes of the frozen island ‘will likely disappear in the near future’, scientist says

    “The glaciers and ice caps on coastal Greenland are “doomed” to melt after reaching a tipping point 20 years ago, according to a new study.

    The vast Greenland ice sheet contains the second largest amount of land ice on the planet, after Antarctica.”

    http://www.independent.co.uk/environment/greenland-glaciers-doomed-melting-global-warming-tipping-point-20-years-ago-coast-climate-change-a7659986.html

  29. Boat on Sat, 1st Apr 2017 6:57 pm 

    Ape,

    Well I don’t know when information access is gone. But tracking displaced humans by year seems like a sensible matric. Maybe even better I’f a reliable cost can be associated to it That is a more tangible set of metrics than inches of sea level rises, fires, floods or parts per million of Co2.

  30. Apneaman on Sat, 1st Apr 2017 8:05 pm 

    tan·gi·ble
    ˈtanjəb(ə)l/
    adjective
    1.
    perceptible by touch.
    “the atmosphere of neglect and abandonment was almost tangible”
    synonyms: touchable, palpable, material, physical, real, substantial, corporeal, solid, concrete; More
    noun
    1.
    a thing that is perceptible by touch.

    Boat for all those people who burned to death when Gatlinburg burned to the ground from it’s AGW jacked fire, the experience was pretty fucking tangible. Same for those who drowned in Huston and all the other AGW rain bombs the last couple of years.

    You’re just trying to be difficult because you’re scared and don’t want to deal with it. I guess that puts you in the “normal” crowd.

    On their evening and Sunday news programs during 2016, the four major American television networks devoted 50 minutes of their airtime to covering climate change. No, that’s not 50 minutes a week, or each, it’s all of them combined for the whole year. 50 minutes (according to a study by Media Matters). CBS, NBC, ABC and Fox (which is cable, and does not have an evening newscast but is prominent among Sunday news shows), all of them, all year, produced enough content about climate change to fill a single edition of 60 Minutes.

    http://www.dailyimpact.net/2017/03/31/lets-watch-50-minutes/

    Like the denial, minimisation, distraction, muzzling or any other human psychological fantasy strategies can halt the laws of physics, chemistry and biologly. It’s the last century for the humans. Their endtimes. Their 59th minute.

  31. GregT on Sat, 1st Apr 2017 8:16 pm 

    Mak,

    “I think they are wrong on the low side.”

    I would tend to agree with you. As far as I can tell that article was written in 2013. Climate change has been progressing much faster than thought even 4 years ago, and a runaway event would speed the process up exponentially. What I find baffling however, is the amount of people (like Boat) who are so fixated on sea level rise. The impacts of SLR will pale in comparison to the consequences of ocean acidification, extreme weather events, climatic instability, and loss of biodiversity.

    Nowhere to run, and nowhere to hide.

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