Thursday February 15, 2007

The giant sucking sound, revisited

energybulletin.net -> news-views.renewwisconsin.org :

Remember the metaphorical "giant sucking sound" that Ross Perot invoked in the 1992 presidential debates? Perot employed that image to characterize the rapid exodus of jobs to Mexico that would surely result from ratifying the North American Free Trade Agreement. Fifteen years later, that vivid phrase could appropriately describe the increasingly desperate circumstances befalling Cantarell, Mexico's largest oilfield. The giant sucking sound you might hear at Cantarell is what happens when hundreds of oil wells begin drawing gas and water from the very reservoirs that used to yield copious quantities of petroleum. It's the sound of an oilfield rolling over its peak.

To unknowing American ears, the name Cantarell evokes a casual, Southwestern feeling, more suggestive of a dude ranch than the world's No. 2 oil field. By far the most productive oil reservoir in the Western Hemisphere, Cantarell was yielding more than two million barrels per day (bpd) as recently as 2005, outperforming all other fields save mighty Ghawar in Saudi Arabia. At $50 per barrel that level of production translated to $100 million a day. When a wealth generator of that magnitude starts to sputter and lose productivity, other oilfields must pick up the slack or else the Mexican economy is bound to take a hit.

See also :

1. Mexico's oil output cools
2. Will Mexico soon be tapped out?
3. Fiscal crisis for Mexico as oil starts to dry up
4. Second largest oil field dying

(2007-02-15 12:41:33 SGT) [Energy] Permalink

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