Oil Industry Headlines: Week of February 22
Despite an almost 60% rise in crude oil prices in 2007, Mexico’s state-owned oil monopoly could not dig itself out of a pit of massive debts. “PEMEX is broke, and the country’s crude oil reserves will run out in less than 10 years,” said the Inter Press Service. Most of PEMEX’s profits are siphoned into the government’s operating budget, leaving little left to invest in future projects. Last year PEMEX posted a $1.48bln net loss despite overall revenues reaching an all-time high of $104bln.
OPEC members convened this week to discuss the possibility of increasing 2008 first quarter production. Despite continuing record-high prices (yet another all-time high for oil was set on Feb. 28th at $102.59), it appears the world may experience a further drop in supplies over the coming months. “While ministers avoided discussion of what OPEC would do during the next meeting on March 5, underlying sentiment for reducing output was apparent,” reported the Associated Press.The dispute between U.S.-based Exxon-Mobil and Venezuela’s state-owned oil company, PDVSA, continued this week in a U.K. courtroom as PDVSA asked the court to lift a freeze on about $12bln in assets. The request will be subject to a two-day hearing next week. “We will not leave London cowing from a loss, because if Exxon wins it would set a bad legal precedent,” a Venezuelan oil official told the daily paper El Universal.
Published Friday, February 29th, 2008 at 1:35 pm and filed under Industry News.