For the first time in 70 years, Mexico will allow private oil production, ending the monopoly held by state firm PEMEX, according to CNBC.
The reason for this should be clear from this chart from Gregor MacDonald: Oil production at Mexico’s premier Cantarell field has been in frefall.
Either Mexico has reached its natural limits, or state-run oil is a disaster. Mexico is obviously praying it’s the latter.
Photo: Gregor Macdonald
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