North America to Drown in Oil as Mexico Ends Monopoly

[green73]

The flood of North American crude oil is set to become a deluge as Mexico dismantles a 75-year-old barrier to foreign investment in its oil fields.

Plagued by almost a decade of slumping output that has degraded Mexico’s 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.”

cont.
http://www.bloomberg.com/news/2013-12-16/north-america-to-drown-in-oil-as-mexico-ends-monopoly.html

[Ronin Truth]

Sure, let's drain Mexico first and save our supply for the following century.

[paulbot24]

Drowning in oil here in North America? Kind of like Shale oil here in the states? Besides a bunch of new jobs in North Dakota which fills Halliburton's coffers, why doesn't this ever translate to anything positive for the people?

[Miss Annie]

Drowning in oil here in North America? Kind of like Shale oil here in the states? Besides a bunch off new jobs in North Dakota which fills Halliburton's coffers, why doesn't this ever translate to anything positive for the people?

Because of the Saudi alliance. Saudi wants us dependent on their oil and our political hacks are in bed with Saudi.

[Cutlerzzz]

Sure, let's drain Mexico first and save our supply for the following century.

Do you own oil? I know I don't. What do you mean by our supply?

[Keith and stuff]

Drowning in oil here in North America? Kind of like Shale oil here in the states? Besides a bunch off new jobs in North Dakota which fills Halliburton's coffers, why doesn't this ever translate to anything positive for the people?
If it causes oil prices to decrease, that means lower gasoline and diesel prices. Which in some states, means lower taxes on gasoline and diesel, which means government get less money and the people keep more money. It's all just a dream at this point, but a man can dream.

[jbauer]

If it causes oil prices to decrease, that means lower gasoline and diesel prices. Which in some states, means lower taxes on gasoline and diesel, which means government get less money and the people keep more money. It's all just a dream at this point, but a man can dream.

Really??? The United States is putting out the most in oil/gas exports EVER right now. We are producing a much more significant portion of our uses now (exporting because we can't refine heavy crude) than we have anytime in recent history. How has that translated to the pump price?

Please educate me

[Keith and stuff]

Really??? The United States is putting out the most in oil/gas exports EVER right now. We are producing a much more significant portion of our uses now (exporting because we can't refine heavy crude) than we have anytime in recent history. How has that translated to the pump price?

Please educate me
The more oil in the world markets, the more supply in the world markets. Supply is a part of the puzzle when it comes to prices. I believe it is cheaper to get oil barreled in Mexico than in ND, also. That's another part of the oil price puzzle.

[Ronin Truth]

Do you own oil? I know I don't. What do you mean by our supply?

I was thinking "under the land mass of the USA and corresponding coastal waters".

[green73]

I was thinking "under the land mass of the USA and corresponding coastal waters".

I own a few quarts, along with some stock.

[Henry Rogue]

Mexico should demand gold in trade, that would get everybody riled up.

[Henry Rogue]

I own a few quarts, along with some stock.Only physical for me.;)

[RonPaulMall]

The more oil in the world markets, the more supply in the world markets. Supply is a part of the puzzle when it comes to prices. I believe it is cheaper to get oil barreled in Mexico than in ND, also. That's another part of the oil price puzzle.

Yeah, because of regulations and prevailing wage structure, the US is by far the most expensive place to take out of the ground. If oil production in the US is gangbusters, that is a sign that the world price of oil is high. I remember when I was a kid and watched Dallas, that was one of the issues that was frequently brought up in plot lines. J.R. was always lobbying politicians to find ways to bump up the price of oil, because the rate it was at in the 1980's used to dance around the price point where it put US producers out of business because of their higher production costs.

[trey4sports]

Dammit just lower my gas prices. I don't care how. Just get gas back to the glory days of a dollar a gallon.

[HOLLYWOOD]

When NATO Oil aka Libyan Sweet grade crude comes online and Iranian Oil released for trade... watch crude plunge.

We'll need another war to maintain the levels for Corporatism-Fascism... question is where's the next false flag price rigging war? when that's worn out

Then refiners can take their plants off-line and jack prices up again... when that's worn out

Then when reserves are down, jack up prices... when that's worn out

Then AAA can say demand is up, so projected increase in travel increases prices... when that's worn out

Wash, Rinse, Repeat every year

[acptulsa]

Obama blathering about carbon taxes in 3... 2... 1...

[Ronin Truth]

Dammit just lower my gas prices. I don't care how. Just get gas back to the glory days of a dollar a gallon.

Hey, I can remember $.18/gallon back in the 50s-60s filling station price wars. Talk about glory days. Of course the dollar wasn't only worth 2 cents then.

[PaulConventionWV]

Dammit just lower my gas prices. I don't care how. Just get gas back to the glory days of a dollar a gallon.

Would be nice. Even $2 I would consider the "glory days", not having actually witnessed $1/gallon gas at an age when I cared.