Saturday, September 26, 2009

Where do we get our oil?

The U.S. produces 4.9 million barrels of oil per day and imports 9.7 million barrels of crude oil per day, with an additional 3.1 million barrels of other petroleum products per day for a net total import of 11.1 million barrels of petroleum per day (Source: EIA) - about 57% -69% of our petroleum use (percentages vary depending on source).

Where is it all coming from (2008 totals)?

Canada ranks first at 2.5 MMBO/D
Saudi Arabia is second at 1.5 MMBO/D
Mexico is third with 1.3 MMBO/D
Venezuela is fourth with 1.2 MMBO/D
Nigeria ranks fifth at 988 thousand BO/D

Next are Iraq, Algeria, Angola, and Russia.

It's nice we have such good friends! Unfortunately, one of our friends has a little problem - their oil supply appears to have peaked and is falling faster than a nasty curveball. Alas, this country gets nearly 40% of their government's national budget from their oil revenues, which are falling at such a quick rate they have to revise estimates downward almost monthly.

What is this country? Why, it's Mexico, our neighbor to the South. Their exports for the first half of 2009 fell 14.8% compared to the first half of 2008 (according to the Oil and Gas Journal), caused mainly by the collapse of the Cantarell oil field, which also happens to be the third largest oil field in the world. Hmm... output from our third highest source of oil imports is declining at a rate of almost 15% per year?

Yes, indeed, and according to the Mexican Secretary of Energy Mexico (via report from Clifford J. Wirth) is projected to stop exporting petroleum entirely by 2015. Being as resilient and non-oil dependent as we are, I imagine that losing 10% of our oil imports will cause us no issues. Surely 1.3 million barrels of oil a day can be found just lying around somewhere!

I also suppose that eliminating 40% of Mexico's budget will cause no civil unrest, searches for alternate sources of income (cocaine? marijuana? opium?), gang activity, or waves of economic refugees. After all, Mexico has never had such problems before...


Kate said...

I may be laughing on the outside, but I'm crying on the inside.

Gavin said...

I knew the day would come sooner or later, but I didn't realise that their reserves were depleting so fast. Obviously a gross underestimation by some person who thought he/she knew better!

Hope you find it somewhere, or there will be chaos in your country very, very soon. If you thought the Global Recession was bad, the citizens of the world aint seen nothing yet!

Best of luck

Gav in Australia.

P.S. We will have the same issues soon enough, as we have peaked as well!