Mexico is running out of oil. How will this impact the US?

Question

Calderón of Mexico is delivering a grim message: The largest oil producer in Latin America is running out of crude."Our oil reserves have been consistently falling," and the decline is "severely threatening" government finances, Calderón told a nationwide television audience in an address last monthuela. Calderón said in his Sept. 2 address that the country held proven reserves that could last nine years.
Looks like those Peak Oil theories are correct. Does this explain a lot to you?
http://www.iht.com/articles/2007/10/22/bloomberg/bxatm.php

Sara......the reserves they are talking about ARE the ones off the coast. They found a pretty good one but it will only last for a few years.

Answer 1

Some of the answers here are just ignorant.

There's a huge oilfield called Cantarell.. for a long while it provided all the crude we needed. Last year the announcement that Cantarell's oil would last considerably less than expected was made.... hence, Mexico's reserves are decreasing.....

Here's why. Mexico's oil is government owned, and PEMEX, the oil company has been governments main income source for the last 50 years. But PEMEX as a company has only developed problems (corruption related) because of the union, because of politics, etc.... so after all this time, it turns out that there is a 20 year fallback regarding inversion.... so we have the same technology, machinery, etc as we had 20 years ago

So there is still quite some oil in Mexico. The problem is that we cannot reach it, because it is too deep underground or in the gulf of Mexico where it cannot be reached with our primitive exploration technology.... and eventhough there are hundreds of specialised companies from a lot of different countries lined up to get contracts to start digging, Mexican law states that given that PEMEX is "owned by mexicans" and the government, PRIVATE INVERSION IS NOT ALLOWED (doesnt matter if national or international)


So we are stuck.... who knows what will happen.

Answer 2

They are not physically running out of oil that is in the ground. They have a big political problem going on on who controls the oil companies. They don't have the facilities they need cause the gov't wants to own these when they are up but only the private companies have the ability to build them. If you were a private company would you put billions in building drilling , refining, storage, and shipping facilities only to have the government take them away once built. Think about it. I think this is REALLY what is going on under the table that they don't want the world to know.

Answer 3

Dang, so this might mean my groundbreaking plan regarding illegal immigration might not work out after all.

I called it the Oil for Illegals Program:

Mexico is the world’s 4th richest oil producing nation; they have oil fields that rival the Middle East’s. If the American government refuses to deport those here illegally, and Mexico’s government refuses to stop encouraging people to go to the US illegally and send money home to prop up their economy...that’s fine.

BUT, in return, Mexico must remit 1 barrel of oil each month for every Illegal Immigrant in the US to offset the drain on our economy from the social services, lost taxes, health care, educational and other services they receive. Think about that, with an estimated 12-20 million illegals in the US...that’s a lot of oil.

It also helps solve another problem, with the influx of free crude oil from Mexico, we then DRASTICALLY reduce our dependence on Arab Oil and OPEC and we can tell them to go get stuffed, lower prices at the pump to put money back in the pockets of the taxpaying citizens who have been footing the bill for illegals for decades, and quit letting Mexico export their problems to us.

They will have to start caring for their own citizens and economy.


What do you think? Thumbs up or thumbs down your opinion

Answer 4

A larger question is why people with energy concerns aren't lobbying our government to use its massive resources for accelerated development and mass production of alternatives ranging from prairie grass, solar, wind, and geothermal energy to bio-diesel and methane fuels from human waste. One reason is because the oil and energy industry monolith prevents it from doing so through its lobbies ts.

Answer 5

The US is never pro-active, it's reactive. We will probably do nothing until the economy comes to a halt. The right wingers won't believe it's a problem until the stock market falls. We're past peak oil and few people care.
This is a story you won't see on Fox. Maybe this explains why Bush is in such a rush to put together a "North American Union."

Answer 6

Mexico is a very wealthy country in resource's other than oil, maybe it's time to develop those instead. Or is this just another excuse to export more of their poverty

Answer 7

I've thumbs uped the person above me cause I like the idea of 1 barrell of Mexico's oil per person that is here illegally coming to the US.

Answer 8

We will just have to buy more oil from our friends in the middle east and South America. Not a good prospect is it??

Answer 9

Yes, I heard it several years ago. It means they will try to hoist off more of their unwanted on us. Or - this would be a shock - they are lying. Like they did about the value of the peso before Nafta.

Answer 10

If that's true, immigration from Mexico will only continue to rise.