Calderon Addresses Mexican Nation On Collapsing Oil Production, Falling Gov. Revenue - Bloomberg

[hatrack]

Oct. 22 (Bloomberg) -- Mexican President Felipe Calderon 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, Calderon told a nationwide television audience in an address last month at the National Palace. That's the same place where seven decades earlier Lazaro Cardenas cemented the anti-American legacy of his presidency by nationalizing the petroleum industry.

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The drop in production is hurting economic growth by reducing funds to improve highways, bridges and ports, Cervera said. Oil provides about 40 percent of government revenue and the slowdown contributed to a 47 percent decline in the nation's surplus in August, according to the Finance Ministry. Mexico's economy has grown at an average annual pace of 2.8 percent since 2002, down from 4.4 percent during the previous five-year period.

Output has dropped to a seven-year low of 3.12 million barrels a day as the state monopoly Petroleos Mexicanos fails to develop new reserves to offset dwindling production at Cantarell, the world's largest offshore field.

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``Oil production in Mexico is declining and declining fast,'' said Alberto Ramos, a Latin America economist in New York with Goldman Sachs, the world's largest securities firm. ``What is needed is a serious energy reform that would allow Pemex to partner with other companies.''

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http://www.bloomberg.com/apps/news?pid=20601086&sid=anVBE7A20LKU&refer=news

[madrchsod]

1. all that oil and there`s nothing to show for it

these guys who run the oil companies have bled the country dry of it`s resources. there`s nothing left for the next generations

[tom_paine]

6. Whattaya mean "nothing to show for it". I submit there is PLENTY to show for it.

Piles and pile and PILES of loot in the Grand Caymans and elsewhere.

Mansions and yachts galore!

And some of the biggest collections of breathtaking art the world has ever seen.

That's surely not NOTHING, is it?

[madrchsod]

7. ya..never thought of that...

[The_Casual_Observer]

2. El Oilo Pico

[phantom power]

3. Goldman Sachs is showing us the way....

What Mexico needs is to "reform" and "partner with other companies." American economic imperialism -- so Powerful and Good, it can even make oil appear in dry wells!

These people are living in a fucking fantasy world.

[John Q. Citizen]

4. Meanwhile, the oliarchy continues to pilfer the treasury. They must be worried

that the treasury is running dry.

[izquierdista]

5. Quick, quick pass a tax cut!

Give Carlos Slim a tax cut and everything will work out for the better!!
:bounce:

[Kolesar]

8. NAFTA wrecked Mexico's farm economy by removing tariffs on US corn...now this...eom