Greenspan Warns Of Mexican Fiscal Crisis As Oil Production Collapse Continues

[hatrack]

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 (sic) from historic peaks in 2004 due to declining yields at its huge but ageing Cantarell offshore field.

State oil monopoly Pemex, which provides more than a third of the country's fiscal revenues, is now aiming to keep oil production at 3.1 million barrels per day for the next few years, down 8 per cent from a 2004 peak of 3.38 million bpd.

EDIT

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

[phantom power]

1. One wonders if our policy wizards in the Capital are considering this factor...

in their wise, wise discussions on Teh Immigration.

[Systematic Chaos]

3. Nah deyz jus a buncha noobz

rly dey iz.

[madrchsod]

2. greenspan has`t done jack shit

to stabilize the monetary policy in this country and he`s lecturing mexico on it`s economy?