Mexican government outchea hustlin' like Yo Gotti

[blackzeus]

Mexico Oil Output Bloated by Water Barrels, Official Says

Petroleos Mexicanos, facing a 10th straight year of production declines, is including water in its oil output and may revise previously reported data, according to a company official briefed on the matter.

A record gap this year between reported output and what the state-owned company processes is partly explained by measuring systems at older fields that are unable to differentiate water-heavy oil from actual crude, the official said, asking not to be named as Pemex debates reducing figures for the past three years or more. Last month, the company cut its 2014 output forecast to 2.44 million barrels a day.

Pemex, which is preparing to form partnerships with private producers for the first time in seven decades, produced 2.48 million barrels a day through June, while its distribution system processed 2.32 million barrels a day, according to the National Hydrocarbons Commission. The commission didn’t give a reason for the 6.5 percent gap. In an e-mail, Pemex’s press department attributed the difference to evaporation, statistical variations and storage, without commenting on the inclusion of water.

Pemex was probably “setting goals they weren’t achieving and postponing the moment to correct the information,” Adrian Lajous, the oil company’s chief executive from 1994 through 1999, said in a phone interview from Mexico City.

Through June, the unaccounted oil averaged 162,000 barrels a day, according to data compiled by the industry regulator, known as CNH for its initials in Spanish. That’s up from 102,700 barrels a day last year and 68,600 in 2012, the data show. Over the first six months of this year, the gap was worth about $2.8 billion of oil, based on prices for the Mexican mix of crude for export.

Water Measuring
CNH has set goals for Pemex to improve its water measuring, according to a statement on its website.

The Energy Ministry and CNH didn’t respond to requests for comment made to their press departments by telephone and e-mail. The Finance Ministry declined to comment on the difference between Pemex’s production and distribution.

Pemex production has also been diminished by oil theft, which it says more than quadrupled from 2009 to 2013. There were 2,167 incidents of pipeline theft reported in Mexico last year, resulting in a loss of about $792 million, equivalent to about 8 million barrels, based on the 2013 average oil prices.

Most of the pipeline thefts are for refined products, and only about 20,000 barrels a day are from light crude, newspaper El Financiero reported Aug. 4.

Round One
The Energy Ministry and CNH will announce the fields that Pemex will retain for crude production purposes today as Mexico opens the oil market to foreign competition for the first time in 76 years. Details for Mexico’s first round of competitive bidding, known as round one, will also be announced, according to a statement by the Energy Ministry.

The peso gained 0.25 percent to 13.1 per U.S. dollar as of 9:32 a.m. in Mexico City, on pace for a fourth straight day of advances.

The production-distribution gap appears to be factored into Pemex’s production for July, which fell to 2.39 million barrels a day, the lowest since October 1995, said Lajous, who’s now an industry consultant.

Declining Output
Mexico’s energy overhaul, enacted this week by President Enrique Pena Nieto, is forecast by the government to increase crude production to 3 million barrels a day by 2018, a goal that now appears “almost impossible,” according to Lajous.

Mexico became a major oil exporter after the 1971 discovery of Cantarell, one of the world’s biggest oilfields in the shallow waters of the Bay of Campeche. Cantarell’s output has declined almost 90 percent since it began production in 1979, and the field now produces more and more water, as does the Abkatun Pol Chuc field, according to Lajous.

“It is rumored that there are about 100,000 barrels of water mixed with the crude being sent to Pemex refining that is being sent back,” Marcelo Mereles, a former Pemex executive who’s now a partner at energy consulting firm EnergeA, said in an interview in Mexico City. “By the time it’s understood that part of the volume shipped is actually water, the production figures have already been made public by Pemex.”

Damn they whippin' the yola with water, watchin' it bubble, and pitchin' it to the custies like it ain't no thang

 

[newworldafro]

low key ... heard Saudi was pulling out more water output from their biggest fields than petro ...

 

[blackzeus]

low key ... heard Saudi was pulling out more water output from their biggest fields than petro ...

Make sure you got an IP blocker, that info is worth billions, they would probably do ANYTHING to make sure that information is not widespread

 

[newworldafro]

Make sure you got an IP blocker, that info is worth billions, they would probably do ANYTHING to make sure that information is not widespread

Low key = not highlighted on your MSM TV or magazines

This info is already out there...

http://energyskeptic.com/2014/matt-simmons-twilight-in-the-desert/

MATT: What Saudi Aramco effectively pioneered in the 60s was a method of injecting water into the flanks of these highly pressurized reservoirs, so that every time you produced a barrel of water you injected a barrel plus. So you never had reservoir pressure declines. And what they were effectively doing, if you could visualize this on a sort of 3D screen, is that the injected water was basically a giant battering ram, squeezing the oil column up higher and higher, preventing the reservoir pressure from ebbing, and also secondarily, sweeping the oil from the flanks of the field to the center. So the water was basically creating the drive to get the oil out, at very high flow rates, without having to resort to artificial lift. And over the years the amount of water injection has risen to where today – this is again one of those numbers that’s a state secret but you can backend to the fact where, now – to get 8-9 million bpd out of the ground, they’re injecting somewhere between 14 and 18 million barrels of highly salinic water into the oil fields to maintain that rate.

Once the sweep is finished, and they get all of the easily recoverable oil out, the reservoir pressures will collapse just like clockwork – you just don’t know when they’re going to collapse – and once oil pressures collapse, the production of fluids might stay the same, but the vast amounts of fluid will be water as opposed to oil. And then they’ll go into the era of the relentless challenge of pulling oil that is still there out of the ground through artificial lift, just like the United States had to do once we peaked. And the majority of what they will be lifting out of the well bores will be water, not oil. And that statement is just as basic as a doctor saying, “you know, these 70 year old people, twenty years from now, will be a lot older, and most of them will be way, way slower in their physical movements and the quality of life will have diminished, and the cost of life will have risen, but we’ll still have them alive.

 

[88m3]

Low key = not on your MSM TV or magazines

This info is already out there...

on the bright side they aren't using fresh water.

 

[blackzeus]

on the bright side they aren't using fresh water.

Fracking

• Environment
• Shale gas and fracking

Fracking is depleting water supplies in America's driest areas, report shows
From Texas to California, drilling for oil and gas is using billions of gallons of water in the country's most drought-prone areas

• Share 14008
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• inShare69
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• Suzanne Goldenberg, US environment correspondent
• theguardian.com, Wednesday 5 February 2014 16.01 GMT
• Jump to comments (249)

An aerial photograph shows a large field of fracking sites in a north-western Colorado valley. It can take millions of gallons of fresh water to frack a single well. Photograph: Susan Heller/Getty images
America's oil and gas rush is depleting water supplies in the driest and most drought-prone areas of the country, from Texas to California, new research has found.

Of the nearly 40,000 oil and gas wells drilled since 2011, three-quarters were located in areas where water is scarce, and 55% were in areas experiencing drought, the report by the Ceres investor network found.

Fracking those wells used 97bn gallons of water, raising new concerns about unforeseen costs of America's energy rush.

"Hydraulic fracturing is increasing competitive pressures for water in some of the country's most water-stressed and drought-ridden regions," said Mindy Lubber, president of the Ceres green investors' network.

Without new tougher regulations on water use, she warned industry could be on a "collision course" with other water users.

"It's a wake-up call," said Prof James Famiglietti, a hydrologist at the University of California, Irvine. "We understand as a country that we need more energy but it is time to have a conversation about what impacts there are, and do our best to try to minimise any damage."

It can take millions of gallons of fresh water to frack a single well, and much of the drilling is tightly concentrated in areas where water is in chronically short supply, or where there have been multi-year droughts.

My oh my you underestimate our organization Agent 0088m3

 

[gho3st]

state govts are okay with this?

 

[blackzeus]

state govts are okay with this?

Hombre de aves papa, tira los estados en los arbustos

 

[newworldafro]

Yep.

Drought in the West.

Frack with millions of gallons of fresh aquifer water, that will be unusable for anything but reuse in other fracking operations and disposal

Makes perfectly good sense to me.

 

[blackzeus]

Yep.

Drought in the West.

Frack with millions of gallons of fresh aquifer water, that will be unusable for anything but reuse in other fracking operations and disposal

Makes perfectly good sense to me.

The cacs remind me of that animal from the Riddikk movie that ate its own guts when Riddikk sliced it open. These oil barons complete lack of disrespect and concern for ecological balance or self-preservation of self and species is All this evil alien tinfoil hat schtick almost has to be true because that's the only way this makes senses. What homeowner willingly destroys their own home and makes it uninhabitable? It ain't like you can drink oil

 

[newworldafro]

The cacs remind me of that animal from the Riddikk movie that ate its own guts when Riddikk sliced it open. These oil barons complete lack of disrespect and concern for ecological balance or self-preservation of self and species is All this evil alien tinfoil hat schtick almost has to be true because that's the only way this makes senses. What homeowner willingly destroys their own home and makes it uninhabitable? It ain't like you can drink oil

Not if your 100% human you can't.......

Spoiler

I'm being facetious about that.... but yeah its a trip.....