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Caribbean-Latin America
How many Mexicans does it take to drill an oil well?
2009-10-06
More than 140,000, and even then they're not very good at it. For this, now acute, problem, blame the politicians

IT IS bad enough that Mexico's economy is in deep recession, triggered by its close links to the ailing United States. To make matters worse, the country's oil industry, its fiscal cash-cow for the past three decades, is declining swiftly. As recently as 2004 Cantarell, the country's main offshore field, produced 2.1m barrels per day (b/d) of crude. Now its output is just 600,000 b/d. There are no obvious replacements: 23 of the 32 biggest fields are in decline. Barring big new finds, the world's seventh-largest oil producer is forecast to become a net importer by 2017.
That's not good for us ...
The Mexican treasury is ill-prepared for this. Taxes and royalties from Pemex, the state-owned oil monopoly, have accounted for almost two-fifths of federal revenues in recent years, compensating for one of Latin America's weakest tax regimes (which collects just 11% of GDP). If oil output drops below 2m b/d, as many industry-watchers fear, the government would be forced to cut spending by more than 10%--or jack up taxes correspondingly, to avoid an unsustainable budget deficit. This might threaten economic recovery.
Posted by:Steve White

#8  How many Mexicans does it take to drill an oil well?

Is Texas going to start drilling again?
Posted by: gorb   2009-10-06 21:26  

#7  Cardenas' nationalization of the foreign dominated oil fields is an almost holy event in Mexican history (when written and read by the Mexican people). There is a yearly holiday for this (sacred) event. Religions view (most) change(s) as heresey. That Pemex is oriented first toward workers' benefits is historically (in Mexico) considered a plus not a minus. The Mexican President who insists upon a transition from oil-field nationalization will be called a "neo-liberal" and traitor to the Revolution...for starters.
Posted by: borgboy   2009-10-06 13:29  

#6  When do the "Mexican people" vote their proxy shares?
Posted by: ed   2009-10-06 11:26  

#5  > To make matters worse, Pemex has been run more in the interests of its workers and their trade unions than of the Mexican people, its notional owners.

The NHS of the Oil world.
Posted by: Bright Pebbles   2009-10-06 11:06  

#4  To make matters worse, Pemex has been run more in the interests of its workers and their trade unions than of the Mexican people, its notional owners.

Welcome to the hotel California...
You can check-out any time you like,
But you can never leave!'
Posted by: Procopius2k   2009-10-06 08:23  

#3  Remittances from the USA are the #2 Mexican revenue source, behind petroleum.
Posted by: gromky   2009-10-06 05:10  

#2  Not the service of assisting their countrymen in sneaking to USA.
Posted by: g(r)omgoru   2009-10-06 03:24  

#1  Hmmm, cut servicess or increase taxes, wonder what they'll do?

(Sarc, they'll of course raise taxes AND cut services)
Posted by: Redneck Jim   2009-10-06 00:37  

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