Mexico has proven oil reserves for only 11 years

Jun 22, 2004 02:00 AM

Mexico has only proven crude oil reserves for only 11 years due to the lack of investment for exploration and production, Energy Secretary Fernando Elizondo said.
Elizondo stated that since 1994 investments in public resources had plummeted about 60 %. On the other hand, private companies have increased their participation in the industry through long-term productive infrastructure projects (Pidiregas). Investments increased from $ 3 bn in 1998 to $ 11 bn in 2004.

Public investment has dropped from $ 3.4 bn to about $ 1.5 bn in the same period. But the rise in Pidiregas investments involves an increased debt for Mexican oil monopoly Petroleos Mexicanos (Pemex) which now pays about 60 % of profits in taxes and each year generates about 35 % of government revenues.
Elizondo said that Mexico is in the "phase of extracting more expensive oil, particularly offshore," where they lack the technology to pump the petroleum.
"Investment is necessary," he said.

The proven reserves in Mexico,one of the world's top crude oil producers, have been reduced from 34 bn barrels in 2001 to about 18.9 bn in 2003. About 61 % of the decline is caused by the new pricing on oil found in both underground and underwater caverns.
The country's total hydrocarbon reserves (proven, probable and estimated) have dropped 18 % since 2001, said Elizondo.

Source: EFE
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