Article

2017-04-05 Caribbean-Latin America

Mexico's proven oil reserves are rapidly being depleted

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Posted by DarthVader 2017-04-05 11:42|| || Front Page|| [3 views ] Top

#1 Some tidbits:

Mexico is the 4th largest exporter of oil to the US
Mexico is the largest importer of refined gasoline from the US
The Mexican government has not been doing a lot of expansion leases for oil companies the past decade

Oil exports is one of the few areas that Mexico is good at and is a fairly corrupt free enterprise (for Mexican standards) and provides much needed foreign coin that doesn't go to the drug cartels.
The fact that Mexico has not expanded its oil reserves is a huge mistake with the shale industry taking off. There isn't a huge demand for new deepwater oil exploration with the US doing so well with fracking and opening up its shores. There has also been new fields found in the North Sea and other friendly business countries.
I predict the Mexican oil exports will slowly dry up over the next decade as bringing new fields online will take time for the new oil glut to clear out a bit and for investors to start looking at Mexico.
In the mean time, their treasuries will start to empty as they will have more capital going out to pay for imports than come in. This is also a major reason they will fight so hard to keep illegals in the US. It is a major source of revenue.
Time will see if they can weather the lean years coming or if they go the way of Venezuela.

So Trump... Build that damn wall!

Posted by DarthVader 2017-04-05 11:51|| 2017-04-05 11:51|| Front Page Top

#2 Good!

Posted by Pholush Whineth3098 2017-04-05 11:52|| 2017-04-05 11:52|| Front Page Top

#3 That's what happens to thoroughly corrupt societies.

Posted by Crusader 2017-04-05 12:28|| 2017-04-05 12:28|| Front Page Top

#4 See - Venezuela, just more slowly.

Posted by Procopius2k 2017-04-05 12:40|| 2017-04-05 12:40|| Front Page Top

#5 Mexico's oil is entirely government owned. It's not "free enterprise", and it's as corrupt as everything else in that shithole.

Posted by Rob Crawford 2017-04-05 17:09|| 2017-04-05 17:09|| Front Page Top

#6 Oil exports is one of the few areas that Mexico is good at and is a fairly corrupt free enterprise (for Mexican standards)

low bar to clear, Darth

Posted by Frank G 2017-04-05 17:46|| 2017-04-05 17:46|| Front Page Top

#7 Similar geology to the Permian across the Mexican border. I assume there will be a similar fracking boom.

Posted by phil_b 2017-04-05 20:04|| 2017-04-05 20:04|| Front Page Top

#8 Baby steps Frank, baby steps. ;)

Posted by DarthVader 2017-04-05 20:36|| 2017-04-05 20:36|| Front Page Top

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