After the news broke on Chevron’s (NYSE:CVX) latest deep water oil find, I was racking my brain trying to remember where I heard that story before. Today, as I was munching on some Doritos it hit me – Mexico!
According to an article by LA Times writer Marla Dickerson, dated March 15, 2006:
About 60 miles from shore and three miles down through seawater and earth lies Mexico's best hope to replenish its slipping oil fortunes.
Mexican President Vicente Fox announced Tuesday that state-owned oil giant Pemex had hit serious pay dirt in the Gulf of Mexico: A deep-water exploration known as Noxal had tapped a field off the coast of the southern state of Veracruz that could contain as many as 10 billion barrels of oil. If the field pans out, it would be one of the largest in the nation's history and go a long way toward bolstering Mexico's rapidly declining petroleum reserves, which some experts have warned could run out in as little as 11 years.
There still isn’t much reliable data on this alleged finding and though only six months has past one would think that such a big cache would generate some sort of activity. Let’s hope that the Chevron scenario turns out better. The major difference between the two scenarios is whereas the Mexican field could be 10 billion barrels; the Chevron field could be 15 billion barrels. That’s a 50% possible increase! Chevron desperately needs to shore up its replacement reserves, more so than ExxonMobil (NYSE:XOM) and ConocoPhillips (NYSE:COP).