When a Yucatan fisherman named Rudecindo Cantarell first noticed oil bubbling up into the waters of Campeche Sound in 1976, Russia was still Communist, Rocky won the Oscar for best picture and the notion of a political party other than the Institutional Revolutionary Party running Mexico unimaginable.
Thirty years on, the Cantarell field -- second in size to Saudi Arabia's Ghawar complex and source of 60 per cent of Mexico's total production -- has begun to decline.
From a 2004 peak output of more than 2.1 million barrels of oil a day, Cantarell is down to 1.8 million b/d today, and will continue to diminish in the coming years. And its waning only seems to underscore the challenges facing the country's monopolistic state-run oil giant, Petroleos Mexicanos.
The world's third-largest oil producer, Pemex "has no real prospects to substitute for Cantarell," oil analyst David Shields says. In spite of booming oil prices and record sales worth $86-billion (U.S.), it ended last year $7.1-billion in the red and has debt of $54-billion.
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