Production
at huge Mexican oil field could collapse: report
AFP
PARIS
Petroleumworld.com 02 10 06
Oil production at the world's second-biggest field, operated by
Pemex at Canterell in Mexico, could fall sharply by 2008, the
Wall Street Journal reported Thursday, citing an internal study
by the Mexican group.
The consequences would be tighter global oil supply, making it
harder for the United States to rely less on the Middle East as
President George W. Bush has proposed.
Cantarell currently produces two million barrels of crude oil
per day, or 60 percent of Mexico's total output.
Under a worst-case scenario sparked by rising water and gas levels
in the field, oil production could plunge to 875,000 barrels per
day next year or to 520,000 bpd by the end of 2008, according
to a study that took place late last year.
Total Mexican output would fall from 1.8 million bpd at present
to 800,000, the newspaper said, and oil prices would probably
increase sharply.
Pemex chief financial officer Juan Jose Suarez Coppell was quoted
as saying that "other fields will be able to substitute (for
Cantarell's output) and increase production," but the newspaper
said some experts outside the company were not so sure.
Mexico is the United States' second biggest supplier after Canada
and was expected to gain from Bush's stated intention of diversifying
energy supplies away from the volatile Middle East.
AFP
02/09/06
Copyright
© 2006 AFP. All rights reserved
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