mexico's largest oil field to die by 12/10- consequences?

[WildspitzE]

Re: mexico's largest oil field to die by 12/10- consequences?

Mexico’s Peso Headed to First Weekly Loss in Seven on Budget
http://www.bloomberg.com/apps/news?p...d=aVIw8hjPzmQ0
"...
‘Notable Underperformer’
“The Mexican peso has been a notable underperformer in the emerging-market universe,” Upadhyaya said. “All of a sudden when risky assets as a whole were rallying strongly in the third quarter and the markets started to get more optimistic on the global growth scenario, Mexico finally started responding.”



Mexico faces the greatest “fiscal shock” in 30 years as the country’s oil output slumps, Finance Minister Agustin Carstens told lawmakers on Aug. 11.



The slide in oil production, which generates 38 percent of federal government revenue, along with falling tax collection from the recession, will widen the budget deficit this year to the equivalent of 3 percent of GDP from 2.1 percent in 2008, the government predicts.



Calderon said this month that officials may propose a combination of higher taxes and lower spending in a bid to keep a lid on next year’s budget gap. Standard & Poor’s cut the outlook on Mexico’s BBB+ debt rating -- the third-lowest investment-grade rating -- to “negative” from “stable” in May amid concern the deficit would continue to grow.


..."

[Starving Steve]

Re: mexico's largest oil field to die by 12/10- consequences?

I think the State of California now has a lower debt rating than BBB+. I think California now has a D as in, "DEFAULT".

I remember what a D meant in school: D meant POOR, as in "Pee-poor". The D grade was one step from an F which meant having to do the entire school year over again.

So here in California, we actually look upward to Mexico's financial condition.... We would gladly trade places with Mexico in bond market ratings. And the people of California would gladly trade California's new currency, the warrant ( also known as the IOU ) for Mexican pesos.

[pwcmba]

Re: mexico's largest oil field to die by 12/10- consequences?

http://www.bloomberg.com/apps/news?p...d=a.x9.b7YSclI

This should help!

BP Makes ‘Giant’ Oil Discovery in Gulf of Mexico

By Eduard Gismatullin
Sept. 2 (Bloomberg) -- BP Plc, Europe’s second-largest oil company, reported a “giant” discovery at the Tiber Prospect in the U.S. Gulf of Mexico that may contain more than 3 billion barrels, sending its shares higher.

[BlackVoid]

Re: mexico's largest oil field to die by 12/10- consequences?

Isn't it outrageous that the Natural Resources Defence Foundation in San Francisco, Cal. is trying to stop the development of the tar sands in Alberta? They don't like the carbon-dioxide and the general impact upon the environment.

No, its not. Oil sands have a returned energy of 2 units for every unit of energy expended in extraction. It is MUCH worse than any windmill, which return about 20 units of energy for 1 unit of energy spent.

Producing from oil sands will not solve anything, due to the laws of physics.

[BlackVoid]

Re: mexico's largest oil field to die by 12/10- consequences?

http://www.bloomberg.com/apps/news?p...d=a.x9.b7YSclI

This should help!

Not likely, at 3 billion barrels its about a month of world supply. At 200 000 barrel / days it is hardly a giant. Giants produce 1 mbpd or more.

[Starving Steve]

Re: mexico's largest oil field to die by 12/10- consequences?

No, its not. Oil sands have a returned energy of 2 units for every unit of energy expended in extraction. It is MUCH worse than any windmill, which return about 20 units of energy for 1 unit of energy spent.

Producing from oil sands will not solve anything, due to the laws of physics.

Oil sands produce heavy oil which is then cooked and reduced to light oil. The natural gas that otherwise is flared-off in Alberta goes for cooking the oil. And if nat. gas should ever get pricey--- most unlikely--- then atomic power could provide the energy to cook the tar.

Windmills (outside of Wyoming or Colorado where the wind blows at hurricane velocity nearly every day) produce a tiny bit of electric energy, but that tiny bit of energy has to be transmitted by wire to cities. So much of the tiny bit of energy from wind is lost from windmills. And windmills have other problems such as break-downs, bird hits, cost of construction, calm weather, etc.

Solar panels are even worse than windmills for power. Panels have to be kept clean and clear for solar power reception. Also clouds and humidity interfere with output from panels, not to mention the low sun in winter, late afternoon, and morning. Nighttime also makes solar panels rather useless.

The maximum (sp?) theoretical output from solar panels is 2 caleries per sq. cm per minute--- not much at all. So solar is a cruel joke.

My retirement money is invested in atomic power and in Alberta's oil sands........ My money is where my mouth is, and so far, so good as an investment.

[peakishmael]

Re: mexico's largest oil field to die by 12/10- consequences?

http://www.bloomberg.com/apps/news?p...d=a.x9.b7YSclI

This should help!

BP Makes ‘Giant’ Oil Discovery in Gulf of Mexico

By Eduard Gismatullin
Sept. 2 (Bloomberg) -- BP Plc, Europe’s second-largest oil company, reported a “giant” discovery at the Tiber Prospect in the U.S. Gulf of Mexico that may contain more than 3 billion barrels, sending its shares higher.

Not likely, at 3 billion barrels its about a month of world supply. At 200 000 barrel / days it is hardly a giant. Giants produce 1 mbpd or more.

Indeed. Also note that BP doesn't specifically state whether 3B barrels is the amount expected to be recoverable, or the total estimated volume. Probably the latter. Now gee, do you suppose BP has any incentive to overstate the likely significance of the find? Like, maybe, it could help their stock price, or lead to easier governmental regulatory approvals? :rolleyes:

Anybody who's ever read any oil producer announcements has been to this movie before. Thunder Horse was announced as having up to 10 billion barrels, with a convenient press release just as the Bush administration was pressing for "drill drill drill" legislation.

[Starving Steve]

Re: mexico's largest oil field to die by 12/10- consequences?

Indeed. Also note that BP doesn't specifically state whether 3B barrels is the amount expected to be recoverable, or the total estimated volume. Probably the latter. Now gee, do you suppose BP has any incentive to overstate the likely significance of the find? Like, maybe, it could help their stock price, or lead to easier governmental regulatory approvals? :rolleyes:

Anybody who's ever read any oil producer announcements has been to this movie before. Thunder Horse was announced as having up to 10 billion barrels, with a convenient press release just as the Bush administration was pressing for "drill drill drill" legislation.

Stop demonizing the DO-ers. My God, "DRILL, DRILL, DRILL, and drill some more." Not only that, BUILD THE ATOMIC POWER PLANTS EVERYWHERE and really solve the energy problem.

This bunch running the U.S. Department of Energy should be sent back to the West Coast and starve the way I have thru life. Better yet, make that bunch in the DOE in Washington, DC work in the fields of California and pick crops for a living. Make these pot-heads under Dr. Chow, and including Dr. Chow, do a day's work every day, from now on.

Can you imagine, instead of solving the problem of foreign imports of energy, this bunch under Chow suggests geo-thermal buildings, solar, and windmills as a solution? Then to make their bologna sausage look good, they come up with bogus carbon-accounting schemes and govn't grants.... Unbelieveable but true!

[jk]

Re: mexico's largest oil field to die by 12/10- consequences?

this thread is about mexico: mexican oil, mexican politics and its ramifications. the field you're talking about is in the u.s. "gulf of mexico" doesn't automatically mean mexican.

[Starving Steve]

Re: mexico's largest oil field to die by 12/10- consequences?

this thread is about mexico: mexican oil, mexican politics and its ramifications. the field you're talking about is in the u.s. "gulf of mexico" doesn't automatically mean mexican.

Any oil discovery anywhere on Earth helps everyone on Earth. National boundaries are becoming rather a thing of the past and are rather meaningless in the oil market.

One more point in reply: Mexico's future will be in up-grading of its reserves of heavy oil. Mexico will either use atomic power or natural gas to cook its heavy oil, just like Alberta does now.

Even Saudi-Arabia is moving in the direction of heavy oil. The light sweet cheap oil from Saudi-Arabia has probably peaked-out, but no-one knows for sure except the King of SA and his oil minister.

The oil minister of SA has warned the West that $200 per barrel oil is coming, and soon. I take that warning as being very important to heed, because why would the oil minister lie?

[metalman]

Re: mexico's largest oil field to die by 12/10- consequences?

consequences? feh... invent a new field in the area... BP Claims Giant Field Found

texas was mexico not so long ago...

[GRG55]

Re: mexico's largest oil field to die by 12/10- consequences?

Indeed. Also note that BP doesn't specifically state whether 3B barrels is the amount expected to be recoverable, or the total estimated volume. Probably the latter. Now gee, do you suppose BP has any incentive to overstate the likely significance of the find? Like, maybe, it could help their stock price, or lead to easier governmental regulatory approvals? :rolleyes:

Anybody who's ever read any oil producer announcements has been to this movie before. Thunder Horse was announced as having up to 10 billion barrels, with a convenient press release just as the Bush administration was pressing for "drill drill drill" legislation.

Apparently the group of people around here who have actually "read any oil producer announcements" does not include yourself.

Despite jk's observation that this is a thread about Mexico, not necessarily the Gulf of Mexico, I just could not let this pass.

Big Oil is hardly lily white but, as has been pointed out on this site before, it's not the Big Oil companies that are publishing the reserves estimates.

Here's a link to the BP press release.

This press release was available to anybody, but apparently some iTulipers are too damn lazy to do their homework before they clutter up this site with useless BS like the above. Show me where it says 3 Billion barrels. You'll note that there is absolutely no mention of any reserves or resource estimate from BP. Zero, nada, none.

In fact this is what BP has to say about it in the press release [for those too "busy" to click on the link above and actually read the press release :rolleyes: ]:

"Appraisal will be required to determine the size and commerciality of the discovery."

In other words, at this time BP isn't even willing to confirm that this discovery will ever produce any oil.


This is a link to a commentary I posted on December 2, 2007 that was prompted by the increasingly absurd media reports coming in the wake of the Tupi discovery in Brazil. The post is a dissection of one such media report...and here's the excerpt that is relevant to this thread:

This one story has been repeated so many times now it's getting ridiculous. A very good example of lazy journalism, something that appears in no danger of "peaking" anytime soon, unfortunately...

...In 2005, U.S.-based Chevron and its partners drilled the deepest offshore oil and gas well in history at 34,189 feet below sea level in the Gulf of Mexico, according to Transocean, the world's largest offshore drilling contractor, which completed the well. The deepest onshore well, at 37,016 feet, was completed this year on Sakhalin Island, off the Russian coast, for ExxonMobil.

Notice that when a developing country NOC like Petrobras completes a successful deep test, that puts it on the verge of world domination as a "great oil power". But when an IOC like Chevron did the same thing...well...ho hum.

Last year, Chevron announced it had found one of the biggest oil deposits in the United States, with up to 15 billion barrels of petroleum, more than 28,000 feet below sea level in the Gulf of Mexico.

Chevron (and its partners) made no such announcement. This nonsense has been repeated so often in the echo chamber media that one almost wants to gag. Here's a link to the Chevron press release about the well.
http://investor.chevron.com/phoenix....0805&highlight=
I defy anyone to find any reference to barrels of petroleum in any context in this release. It was one of the "experts" that the media love to employ to get their sound bites that came up with the 15 billion barrel number; it got picked up and is still being repeated and now attributed to Chevron...

Over-hyped media reports on oil finds are commonplace. This post lists a few recent examples of similar media hyper-ventilation on oil fumes.
http://www.itulip.com/forums/showthr...19470#poststop

...

[ThePythonicCow]

Re: mexico's largest oil field to die by 12/10- consequences?

Thank-you, peakishmael, for provoking GRG55 into providing one of the more informative posts on oil I've read recently (not saying much; I don't read many )

[WildspitzE]

Re: mexico's largest oil field to die by 12/10- consequences?

Despite jk's observation that this is a thread about Mexico, not necessarily the Gulf of Mexico, I just could not let this pass.

Thank you....

[WildspitzE]

Re: mexico's largest oil field to die by 12/10- consequences?

Gregor has another post re Mexico:
http://gregor.us/mexico/teaching-too...il-production/