Mexican trove: Production platforms on the Cantrall field.
Fears grow as Cantarell gauge dips
Mexico's giant Cantarell oilfield, the world's second largest, is rapidly declining in productivity, a report said.
Cantarell is producing 7% less than at the beginning of the year and 15% less than when it peaked in late 2004 at just over 2.1 million barrels per day, E&E Daily reported.
The state ranks behind only Saudi Arabia's Ghawar field in size. Its decline has serious implications for Mexican state oil company Pemex and for the US.
Pemex expected Cantarell would produce 1.9 million bpd in 2006 and 1.4 milliion in 2008. Leaked internal memos from Pemex described a worst-case scenario with output dropping to 520,000 bpd by 2008, or a 71% drop from May levels, the news service reported.
Mexico is the US's second largest petroleum supplier after Canada, and the rapid decline in output could tighten supplies there, the report said.
Mexico's output fell last month for the third month in a row.