Pemex Predicts The End Of Oil

“Mexico, Jul 27 (Prensa Latina) Petroleos Mexicanos (PEMEX) announced that oil reserves may run out in seven years.”

Oh boy. And everyone still thinks we’re not at peak yet. Maybe this is why Chrysler can offer lifetime warranties. If Mexico cannot meet their “internal needs”, does that also mean Mexico will stop importing oil to the U.S.? Dumb rhetorical question… more evidence piling up that we can now count the years on one hand until full blown collapse.

David Strahan has an interactive oil-depletion map that puts this all into sharp perspective.

Going to update this post – lots more news today:

Dow, S&P Have Worst Week in 5 Years

Oil Near All-Time High Over $77

Bush Calls For Easier Wiretapping Rules (as if it matters anymore)

U.S. Has Highest Incarceration Rate in the World, Second Only To North Korea

$20 Billion In Arms Sales To Saudis (don’t you just wish they’d start spending this money on fixing the problem instead of fighting over what’s left? Guess who they’re buying the arms from.)

Map of Universal Healthcare In The World (not a bad place to start spending those trillions in “defense” on)

Martial Law Threat Is Real

“If ordered to turn their guns and bayonets on their fellow Americans, would our “heroes” in uniform follow their consciences, and their oaths to “uphold and defend” the Constitution of the United States? Or would they follow the orders of their Commander in Chief?” [in a heartbeat]

Prices Will Stay Sky High For Years [don’t expect the media to tell the truth, prices will stay sky high forever]

*** Metals prices continue to rise – copper, lead, steel, zinc, antimony, and other metals continue to rise so almost everything that has a metal in it is also going up. since 2003, the price of copper has increased fivefold (in US dollar terms). For zinc the increase has been fourfold and for lead, sevenfold. ***

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9 thoughts on “Pemex Predicts The End Of Oil

  • July 28, 2007 at 5:46 pm
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    There was an article in the Toronto Star yesterday that had oil companies overtly saying that their production was going down because prices did not allow them to profitably begin drilling at new locations:

    http://www.thestar.com/article/240373

    “There’s still not enough prospects to drill, even at these higher-threshold prices, and make those projects economical, so you’re seeing all the majors on a global basis having declining production,” said Ben Halliburton, chief investment officer at Tradition Capital Management in New Jersey.

  • July 28, 2007 at 6:44 pm
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    Their lying. Oil company profits are staggeringly high.
    http://www.consumeraffairs.com/news04/2005/oil_price_probe.html

    http://www.msnbc.msn.com/id/8646744/

    It gets worse and worse as you examine the data from the last couple of years. Profits climb higher and higher and yet the energy infrastructure investments that everyone claims is needed are not being done.

    The reality is – they know the end of the age of oil is at hand and they are unwilling to extend themselves in this direction like they once were.

  • July 29, 2007 at 8:04 am
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    David Strahan’s map is interesting, but there are a few things to point out…

    Canada’s peak is that with or without the tar-sands? Tar sands is probably a marginal production method at best.

    I also think that he may have to revise his Saudi Arabia figure soon.

  • July 29, 2007 at 9:13 am
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    I don’t know. Canada’s tar sands won’t really matter anyway. They shouldn’t even bother imo, since it’s going to cause such incredible environmental destruction.

  • July 29, 2007 at 9:58 am
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    Canada’s peak is WITH the tar sands. All of Canada’s gains are attributable to expected future tar sand development.

    Processing the tar sands is so expensive, and the oil they produce is of such low quality, that they are very close to a break-even point at the moment, as I understand it. They burn huge amounts of natural gas (relatively clean-burning) during processing to produce a very dirty end product. The fact that so many companies are going into tar sands shows that they expect oil prices to rish so much that these operations will be very profitable. Expertise to run these operations is limited, as are the tools, so that’s one of the constraints on growth (and on costs).

    They’re also paying very high wages to attract people to go and work there. The infrastructure in the area is extremely tightly stretched; the houses being built are of terrible quality (and are seeing massive inflation); and there are drug and alcohol abuse problems stemming from the affordability of such things with such unprecedented wages, and little else to do in the area.

    http://www.westerninvestor.com/regional/fortmacjuly07.pdf

    China has been getting its hands in, too… a lot of the oil from the tar sands is already dedicated to China by contract.

  • July 29, 2007 at 1:11 pm
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    I have never understood the use of so much natural gas to produce so little tar-sand oil. Just makes no sense to me. The EROEI is marginal at best, and the environmental damage is massive.

    BTW, is there a link on the PEMEX announcement? Mexico admitting this is a major development IMO. Between the loss of production at Cantarell and the increase in domestic use, Mexico may drop off the oil export map entirely within a handful of years. It was only two years ago that it was our second or third-largest supplier.

    Not good. Not good at all.

  • July 29, 2007 at 3:58 pm
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    Cash, it’s not good in more ways than one… because Mexico’s economy is quite dependent on oil, but they are also dependent on money being sent home from Mexicans living in America. Many of those Mexicans worked in the housing industry, which is in decline. So, they’re getting hit from more than one side.

    That border will start to look more and more tempting as it gets worse.

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