SubscribeMexico’s Oil Production Continues to Collapse
Seeking Alpha
Gregor Macdonald
In May, oil production from Mexico’s (previously) largest oil field Cantarell slipped below 700 kb/day. While the death of Cantarell has been much discussed since it peaked five years ago at 2.1 Mb/day, what’s less recognized is that the toppling of Cantarell has absolutely shattered Mexico’s effort to halt the decline of oil exports.
The problem is simple. With Mexican domestic consumption of oil rising or flat, and overall production in serious decline, exports have fallen even more dramatically. And given that Mexico will one day not be able to export oil at all, one wonders they should take preemptive action, and phase out oil exports now.
My comment: One interesting item to note was that I understand that Wavefront Technology was down in Mexico discussing the Powerwave technology with Pemex as a way to try and slow the decline rates in their fields. If they were to get a company like Pemex onboard it would be the validation that Wavefront would need to be accepted in the mainstream.
John Polomny
The Real Deal
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