Quote:
Originally Posted by Baht Dog
The charts you cite show increasing Canadian oil imports and a strong correlating relative decrease in Mexican imports. Net imports of oil as it relates to US problems is probably the discussion of another topic, as the thread topic appears to be about Mexico's declining oil output and revenue and how it primarily effects the stability of Mexico.
EIA, Wiki (an aggregator of sources) and many and other sources clearly indicating that Mexican oil output is in comparatively rapid decline. Google "Mexican oil output decline dwindling."
The worse it gets, the more likely it will exacerbate and destabilize an already dangerously unstable situation in Mexico.
The US government and military (and concerned Patriots) are very concerned about Mexico devolving and are making dire projections via ongoing reports and analysis that Mexico could collapse over the next 25 years. I don't think it will even take that long. The situation is very grim and I don't see anything on the horizon that is going to improve it as the global economy continues to spiral downward. What happens if the global economy is far worse in ten years?
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Mexico is competing with Canada for a share of the diminishing US market.
As Canada's pruduction costs decline, Mexico can't compete.
Mexico has the smaller economy which depends heavily on oil exports to the US.
Variations of economic behavior in Mexico have a minor effect on the US, but variations in the economic behavior of the US have a major effect the other way.
The decline in oil production on a field has a large economic component; it's not just limited by physical constraints.
Oil will not be produced if it can't be sold for a profit.