Mexico's oil production down 5.3% in 2007

Mexico's oil production fell by 174,000 b/d or 5.3% in 2007 to an average of 3.08 million b/d, according to state-owned Pemex.

Eric Watkins
Senior Correspondent

LOS ANGELES, Jan. 28 -- Mexico's oil production fell by 174,000 b/d or 5.3% in 2007 to an average of 3.08 million b/d, according to state-owned Petroleos Mexicanos, which said the drop was due to inclement weather and an expected decline in the Cantarell complex in the Gulf of Mexico.

Pemex said its production of super-light crude was greater than expected along the coast of Tabasco state, and output in the Ku-Maloob-Zaap region, also in the Gulf of Mexico, exceeded forecasts.

Meanwhile, the energy ministry is expecting Cantarell's crude production to decline gradually over the next 3 years and then sharply, beginning in 2011.

The most serious weather events of 2007 were Hurricane Dean's passage through the Gulf of Mexico in August, which forced bridges to be shut down, and cold fronts in October that forced a halt to operations for several days.

Pemex posted $38 billion in foreign oil sales, up 9.3% over 2006, while exports by volume averaged 1.68 million b/d. The company earned some $44.05 billion from domestic sales, 9.6% more than last year. Mexico is the No. 2 foreign supplier of oil to the US.

Contact Eric Watkins at hippalus@yahoo.com.

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