Mexico’s state owned oil monopoly, Pemex, is reporting dramatic rates of falling production. Mexico’s oil production has fallen 24 percent in the last 12 months alone. This is getting the attention of oil traders and speculators contributing to the recent rise in the price of crude oil, and subsequently, refined products such as gasoline.
Were Pemex not state owned, there likely would be increased exploration that could lead to replacement of falling reserves. But change isn’t likely to come soon, maybe not at all. No surprise where government is involved.
Whether you count this as peak oil or not depends on your point of view. Proven reserves are falling in Mexico and no one knows for sure if increased money for exploration and updated infrastructure would restore those reserves or not.
Either way, falling production from one of the world’s top 10 oil producing nations isn’t good news for energy consumers.
It can, however, be good news for energy investors. Why not profit from government ineptitude and peak oil at the same time?
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