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Friday, February 02, 2007

The Coming Crash at Cantarell

The Wall Street Journal reported last week (I'm adding emphasis in bold)...

Daily output at Mexico's biggest oil field tumbled by half a million barrels last year, according to figures released Friday by the Mexican government. The ongoing decline at the Cantarell field could pressure prices on the global oil market, complicate U.S. efforts to diversify its oil imports away from the Middle East, and threaten Mexico's financial stability.

The virtual collapse at Cantarell -- the world's second-biggest oil field in terms of output at the start of last year -- is unfolding much faster than projections from Mexico's state-run oil giant Petroleos Mexicanos, or Pemex. Cantarell's daily output fell to 1.5 million barrels in December compared to 1.99 million barrels in January, according to figures from the Mexican Energy Ministry.

XX My take -- if you think illegal immigrants from Mexico are flooding across our border now, you just wait until that Cantarell revenue starts to dry up.

Read the rest of the story by CLICKING HERE.

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