Mexico's Fading Oil Output Squeezes Exports, Spending

Mexico's oil output is falling faster than expected, increasing the chance that the country will lose its status as a major oil exporter in coming years and face a worsening budget shortfall. Output at state owned oil monopoly Petroleos Mexicanos's offshore field Cantarell, once the world's second largest oil field, has plunged to 500,000 barrels a day from its peak of 2.1 million in 2005. "I don't recall seeing anything in the industry as dramatic as Cantarell," says Mark Thurber, assistant director for research at the Program on Energy and Sustainable Development at Stanford University.....Read the entire article

Citigroup Recommends Investment in Mexican Oil Giant

Banking giant Citigroup recommends investment in Mexican state run oil company Petroleos Mexicanos (Pemex) via its dollar denominated bonds. The firm urged investors to "hold" the bonds, reversing a previous recommendation to sell, Mexican media reported on Monday. However, the Citigroup did not give its highest rating of "overweight" to Pemex because of some negative operating data, the bank said in a report. Pemex's biggest oil field, Cantarell, has now had five consecutive years of production declines, bringing the company's overall production to its lowest level in 16 years.....Complete Story