Mexico out of gas

12 September 2007 By Ian Campbell

Pipeline bombs in Mexico have driven oil prices to record highs. But the damage is more to natural gas and Opec is coming to the rescue. For Mexico the news is still bad. Factories will close temporarily. The episode is an extreme symptom of Mexico s resistance to progress. Pipeline bombs in Mexico have driven oil prices to record highs. But the damage is more to natural gas. And Opec is coming to the rescue.

This content is for Subscribers only

Context News

Jesus Reyes Heroles, head of the Mexican state oil company, Pemex, said that explosions Tuesday in pipelines in the eastern state of Veracruz would not affect oil output or exports but would temporarily reduce domestic supplies of natural gas by a quarter.

According to the 2007 International Energy Outlook of the US government's Energy Information Administration, Mexico's state oil company, Petróleos Mexicanos (Pemex), has announced annual production decline rates of 14 percent in its largest oil field at Cantarell. And as the EIA does not anticipate adequate investments through 2015… production in Mexico is projected to fall to 3.0 million barrels per day in 2015 from the 2006 level of 3.7 million barrels per day.

Email a friend

Please complete the form below.

Required fields *