Thursday, February 12, 2009

Canterell Dying, Mexico Close Behind

Enjoy the cheap oil now, friends. A great reckoning approaches.

Pemex Oil Output Declines at Fastest Rate Since World War II
By Andres R. Martinez, Bloomberg
Jan. 20 (Bloomberg) -- Petroleos Mexicanos, Mexico’s state oil company, will probably report its fastest drop in production since 1942, eroding revenue as plunging crude prices limit the amount of cash available to drill for new reserves.

Pemex last year likely extracted 2.8 million barrels a day, down about 9 percent from the 3.08 million a day pumped in 2007, representing a total of $20 billion in lost sales, according to data compiled by the government and Bloomberg. The Mexico City- based company, which had revenue of $104 billion in 2007, plans to report annual production figures tomorrow...

...Cantarell represents about one-third of Pemex’s output today, down from 65 percent at its peak in December 2003...

Action Items

  • Get serious about contingency plans for fuel supply interruptions
  • Grow a garden
  • Always remember we are in a cycle of negative social mood - there will be a day for "mustard seeds" and foolish optimism again, but that day is far off. Focus now on saving, on planning for major disruptions in your life, on living well in a time of decline. The Renaissance will come, but only after the crash wipes out this current world system
  • Know and understand the implications of the Export Land Model on petroleum supplies
  • If you live in the Southwest, have a contingency plan for the eruption of violence fueled by drug wars, mass population movements from Mexico and a true plunge into another Civil War south of the border once the oil money dries up

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