Sunday, January 20, 2008

Without a backup plan?, Too Risky!!!!

A country with only 9 years-oil reserves, without technology to explore and to extract existing hydrocarbons inside the territory, plus the state company in charge has been in red numbers for ten years, it is not a single bad dream, is a reality. This is the main issue in energy matters of México nowadays.

Scant one year of the new government of this country, the question whether or not to privatize some components in the value chain of hydrocarbons that would allow modernization or whether it should prompt research into alternative energy sources to oil, remains. But, what do other Latin American countries have done to overcome adversity?

A decade ago, the idea that Brazil (185 million inhabitants and the tenth world economy) could become a self-sufficient country in energy, it would have seemed outlandish. However, Brazil has remained open to foreign investment, while also encouraged international companies such as Exxon Mobil, Shell and Chevron to allocate billions of dollars in exploration offshore.

These efforts have resulted in the discovery in late 2007 of the largest oil discovery since the discovery of the deposit of 12,000 million barrels in 2000, in Kazakhstan. Now Tupi, the new reservoir in deep waters, contains the equivalent of between 5,000 and 8,000 million barrels of light crude, this has achieved a seat for Brazil within the global oil Cartel.

Undoubtedly there are many other facts that make a country takeoff, but what is certain is that if a country does not understand the importance of the technological issue and domestic policies to achieve this will be lagging. “Have revolutionary goals with evolutionary steps”

1 comment:

sophistx said...

Interestingly enough, both articles point out the fact that the Mexican government will essentially be the downfall of the oil production and not the actual existence of "proven" oil fields. It turns out that a couple decades of greedy leaching off the oil giants in Mexico will be their ruin.

It turns out that Mexico only has ten years left of proven oil reserves. This is an interesting fact since Mexico is in the top five list of US oil imports. I'll be interested to follow subsequent articles to see how the US responds to the eminant collapse of the Mexican oil market, and thus, a large part of the Mexican economy.

Two interesting things to watch...
1 - Large Mexican oil companies may be opened up to more self-control and foreign investment.

2 - New drilling methods may and satellite mapping may change Mexico's future.