SHOOT: Mexico's cash cow, Pemex [an oil production company] has US$50-billion in debt. Production is in terminal decline, exports are down more than 13% from 2008.
Oil production from Pemex, the state-owned monopoly operator, averaged 2.61 million barrels a day in 2009, down 7% from 2008 and 22% from the 2004 peak. Although Pemex budgeted US$19-billion for deep water exploration in 2009, no new large fields have been found, and the company has US$50-billion in debt. In 2008, Mexico's Congress rejected a proposal from President Felipe Calderon's to allow some foreign investment in oil exploration.
Pemex needs some help. Its production is declining and exports are falling even faster – down 13% from 2008 and 35% from 2004. With Mexico's population growing 1.1% annually, domestic consumption is set to rise over time, although the recession has brought it down this year. |
clipped from www.financialpost.com
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