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- Sep 25, 2011
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North America to Drown in Oil as Mexico Ends Monopoly - Bloomberg
But will the Obama regime allows gas prices to come down at the pump? So far they have not.Plagued by almost a decade of slumping output that has degraded Mexicos take from a $100-a-barrel oil market, President Enrique Pena Nieto is seeking an end to the state monopoly over one of the biggest crude resources in the Western Hemisphere. The doubling in Mexican oil output that Citigroup Inc. said may result from inviting international explorers to drill would be equivalent to adding another Nigeria to world supply, or about 2.5 million barrels a day.
That boom would augment a supply surge from U.S. and Canadian wells that Exxon Mobil Corp. (XOM) predicts will vault North American production ahead of every OPEC member except Saudi Arabia within two years. With U.S. refineries already choking on more oil than they can process, producers from Exxon to ConocoPhillips are clamoring for repeal of the export restrictions that have outlawed most overseas sales of American crude for four decades.
This is going to be a huge opportunity for any kind of player in the energy sector, said Pablo Medina, a Latin American upstream analyst at Wood Mackenzie Ltd. in Houston. All the companies are going to have to turn their heads and start analyzing Mexico.
The revolution in shale drilling that boosted U.S. oil output to a 25-year high this month will allow North America to join the ranks of the worlds crude-exporting continents by 2040, Exxon said in its annual global energy forecast on Dec. 12. Europe and the Asia-Pacific region will be the sole crude import markets by that date, the Irving, Texas-based energy producer said.