The decline in Mexican production has halted for now, staying near 3.55 mb/d since January.

So is Mexico so therefore everything will be all right whew.
And I thought their biggest field was in terminal decline.

The flow rates are controlled at the wellhead. Yes they can probably open the taps but at what cost? They are managing their reserves very well and are very conscious to minimise water breakthrough. If production is flat at $75 you can be damn sure they are doing everthing they can to even maintain production and it is an heroic effort.

Marco.

Party Guy,

As we discussed the other day, the decline rate in post peak regions is net. If we look at production on an annual basis, the difference would be:

Last year's production - Declines from existing wells + Increases from workovers/pressure maintenance + New wells = New Annual production rate.

On an annual basis, post-peak regions can show, and have shown, increases in production. What do the following regions have in common: Texas; Lower 48; Total US; North Sea; Russia; Saudi Arabia; Mexico and now the world (crude oil)?

Answer: all of them have shown production peaks that are broadly consistent with their HL models (Texas and Saudi Arabia, as swing producers, peaked at later stages of depletion). Also, many of them have shown production increases post-peak, albeit to production levels below their peak levels.

So, get back to me when Saudi Arabia shows an annual crude oil production rate of 9.6 mbpd or more.

In Saudi Arabia and in virtually every net oil exporting country in the world, flat production = declining oil exports.

BTW, recall the discussions of Saudi Arabia looking into importing coal? Let's see, what would they do after they start importing coal?

http://www.upi.com/Energy/Briefing/2007/07/12/saudi_arabia_invests_in_re...
Saudi Arabia invests in renewables
Published: July 12, 2007 at 5:21 PM

RIYADH, Saudi Arabia, July 12 (UPI) -- Saudi Arabia has set up a multimillion dollar renewable energy research center in an effort to diversify from its reliance on oil funds.

The center, on the campus of the Dhahran-based King Fahd University of Petroleum and Minerals, is currently working on resource mobilization before its premier research activities kick off in a year's time, Arab News reported. . .

. . . The center has set up different branches for research on hydrogen, methanol and fuel cell; solar and wind energy; advanced energy storage systems; electrical infrastructure and control systems; and economics of renewable energy.