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Old 09-21-2009 | 03:40 AM
  #10  
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Winged Wheeler
Libertarian Resistance
 
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Originally Posted by atpcliff
Hi!

Yes, but lower production in the face of increasing demand, does come as a surprise.

Mexico WANTS to produce more oil, and they can't, because the easily produced oil they have is declining, meaning their "container" of oil is getting drained...hence Peak Oil.

cliff
NBO
I think I know what you mean by the term "peak oil" as it has been in circulation for a while. Essentially it is supposed to mean that we are running out of oil.

Your conclusion here might be true. It may also not be true. Your position requires a number of assumptions that you have not highlighted.

For example: you imply that Mexico's ability to produce the desired amount of oil is limited only by the amount of easily gotten oil available. Isn't it possible that a state controlled enterprise has had its "profits" diverted to other state projects? Have they delayed capital investments in equipment, exploration, research, etc? I don't have an extensive knowledge of PEMEX, but I would bet that yes-answers to these questions are at least possible. If so, running out of easily gotten oil is only part of the problem for Mexico and PEMEX.

I'd say your claim for peak oil in Mexico is not yet proven.

WW