09 March 2010

MEXICO: Pemex's Rapidly Declining Oil Production.

NYTIMES/ ANALYSIS /    Mexico's oil production is declining so rapidly that it may begin importing oil in 10 years. Its oil is crucial to American security as well to the nation's prosperity where it accounts for up to 40% of the budget. “It’s not just about energy security but national security, because our neighbor’s economic and political well-being is largely linked to its capacity to produce and export oil,” explains analyst Jeremy Martin. Mexico probably has plenty of oil in the Gulf's deep waters but Pemex lacks the technology and politicians the will to change restrictive laws about foreign investment to get at it.