II:U.S. Oil Prices May Rise if Mexican Oil Exports Continue Falling
SUGAR LAND--June 7, 2011--Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Despite today's high crude oil prices, oil production by Mexico's national oil company continues to decline, a victim of a low rate of investment and slow adoption of new technology, according to Rice University's James A. Baker III Institute for Public Policy. If not reversed, the decline carries significant implications for Mexico as well as the U.S., James Coan, a research associate at the Baker Institute, told Industrial Info.
"There has been an extremely steep decline in production from Mexico's giant Cantarell oil field," Coan told Industrial Info. "Production from Cantarell has fallen by nearly 75%, from 2.14 million barrels per day (BBL/d) in 2004 to 558,000 BBL/d in 2010. That's an astounding decline."
