Friday, March 16, 2012 10:37:37 PM
That's what I mean @simbha, I thought they both had lots of proven reserves, but it`s largely "potential" reserves. Live & learn at IAB! From what I`ve read, Mexico`s "plan" is to keep their fields under-developed until oil is REALLY high, so it`s worth a fortune (in the future). idk how that`s better than getting money NOW in a poverty striken nation, but like you say, it`s not MY country!
Agreed @robosnitz, Tom Hanks makes anything `sound good` eh?
Friday, March 16, 2012 8:37:39 PM
[... Continued from previous post]
For example, Mexico's proved reserves include the Chicontepec field, which it`s estimated contains around 130-140 billion bbl... roughly half of Saudi Arabia`s reserves. However, the vast majority of this cannot be produced with current technology... AND the political situation in Mexico is such that the government looks at Pemex (the national oil company, which is the only company authorized to produce crude in the country) as a governmental revenue source - and thus siphons loads of money away from it, essentially allowing it to operate but never to invest in infrastructure of technological development.
In my opinion, that`s a poor sovereign strategy - but it`s not my country, so what relevance is it to me? What will likely happen is that Pemex will be unable to maintain its current revenue stream for much longer - and the government will have to either allow it to invest in technology/capital or open the country`s reserves to fore