Mexico oil output drop may spark crisis

[4dsc]

Do you think??

http://www.smh.com.au/news/Business/Mexico-oil-output-drop-may-spark-crisis/2007/06/14/1181414413628.html

Declining oil output in Mexico could spark a major fiscal crisis there, former Federal Reserve Chairman Alan Greenspan said on Wednesday, while also railing against US immigration policy.

"There is no doubt that Mexican overall (oil) production is down and if it continues down, and prices don't continue up to offset that, then there is a huge fiscal crisis pending," the former US central banker said via a video link to a business conference in Mexico City.

Mexico, the world's No. 9 exporter of crude oil and a key supplier to the United States, has seen its oil output taper off from historic peaks in 2004 due to declining yields at its huge but ageing Cantarell offshore field.

[ixion]

1. and since they haven't shown a care in the world for their environment while processing the oil

they've ruined a potential eco-tourism avenue, too. :-(

[Rydz777]

2. Very true. The environment has been victimized by PEMEX,

the state owned petroleum monopoly, which has been managed by a corrupt oligarchy - polluting the land and squandering the economic birthright of the Mexican people.

The Cantarell field is part of the worldwide problem of "peak oil" which makes even more urgent the need to turn to alternative energy sources that are both renewable and non-polluting. Sadly, it may take a crisis before we are moved to serious action.

[NickB79]

3. This might explain the push to build a US-Mexico border wall

40% of the Mexican government's revenue comes from oil sales. If oil production falls faster than oil prices rise, the government will be unable to continue to provide social services for the general populace. When this happens, there is a good chance of civil unrest throughout the country, and a flood of refugees streaming across the border.

[Javaman]

4. Exactly, I was thinking the same thing. I think a if it was only a fiscal crisis

they would get off easy. Sadly, it they won't.

Once Canterall is finally gives up the ghost, I have predicted in other posts that the illegal immigration that people are complaining about now will be looked upon fondly as the good old days when the refugees start streaming across the border from the Mexican civil war.

[kestrel91316]

5. We already have a flood of refugees coming across the border.

They've been coming for YEARS.