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Mexico: Cantarell's Plummeting Output and the Need for Investment
Jul 7, 2008 | 19:08 GMT
Ronaldo Schemidt/AFP/Getty Images
Summary
Production at Mexico's giant Cantarell oil field has dropped 34 percent over the last year. Considering that Petroleos Mexicanos (Pemex) contributes up to 40 percent of the Mexican government's budget, the effects of a major production decline would affect the whole country. Mexican President Felipe Calderon has proposed legislation that will allow foreign investment in Mexico's energy industry, which will enable Pemex to expand Mexico's refining capacity and bring more oil wells online. As time passes, Calderon's proposal becomes more and more important for the Mexican economy.
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