Mercury Rising 鳯女

Politics, life, and other things that matter

Follow the money

Posted by Charles II on February 8, 2007

From La Jornada

Pemex, the Mexican oil company, is #40 on the list of the largest businesses in the world and #11 on the list of petroleum companies. Its revenues were 84 Billion in 2006, and it employs 139,000 people. Due to rapine by the political class, it also ran in the red to the tune of $7 Billion (a cautionary tale to those who think that nationalization solves all problems). And so it finds itself needing $25B just to meet basic operational needs. The drop in world oil prices and declining productivity in the Cantarell field, which provides half of the production lead one to believe that the fault is lack of investment.

Declining production will be very bad for most Mexicans and most Americans. It will be very good for a handful of oil majors.

Sorry, the comment form is closed at this time.

%d bloggers like this: