Time For Calderón To Deliver

June 2008 | Data Release

atest data reveal that Pemex average monthly production fell to 3.14mn barrels per day (bpd) in April, a rapid decline from 3.60mn a year earlier. In particular, production at the Cantarell oilfield has shrunk 24% during the past 12 months. In light of these stark numbers, there is no hiding the urgent need for President Felipe Calderón to drive his energy reform proposals through congress. That said, the chances of an early success are fast evaporating. Ordinary congressional sessions on reform ended on April 30 without progress, and the opposition Partido de la Revolución Democrática (PRD) has now forced a 71-day national debate. We are still hopeful that a piecemeal deal can be agreed upon this year, which would, at the very least, boost the money available for exploration and development. With the Mexican oil basket on the verge of US$100/bbl, this should hardly be a drain on resources. However, it is looking increasingly doubtful that we will see an extensive opening up of the sector to private investment anytime soon.

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