Currently $5.13US/Gallon here. Or $1.759/litre.

Was wondering when you'd post about this, if you would.

The scary thing you have to watch out for is Mexico's declining oil production. They're currently #2 exporter to the US, supplying 1.5 million barrels per day. Various predictions expect this to drop sharply within the next 10 years, perhaps by as much as 1 million barrels, as production takes a nose-dive and local consumption in Mexico goes up as the standard of living rises. Oil is currently 40% of Mexico's income.

What happens when they have no more oil to sell, and America can't get the oil it needs from them? Throw in the biofuels driving up the cost of corn, the staple that feeds Mexicans, and you've got a bit of a dilemma on your hands.

The next president is going to have a damn fun time indeed, and Bush may actually be looked upon favorably in the next few decades, due to the beachhead he created in Iraq (America is never truly going to remove all of its troops from Iraq).

 

MEXICO CITY (Reuters) - Crude oil output from Mexico's huge but aging Cantarell offshore field fell to 1.260 million barrels per day in December, the energy ministry reported on Saturday.

It was the field's lowest monthly output level last year and a 16 percent drop from December 2006's 1.493 million bpd.


That's a 15.6% decline. Cantarell is the 2nd largest oil field in the world. If rates stay about the same (some predict they are going to get worse), in about 5-6 years it's only going to be pumping 500k.

Even if you don't believe oil is going to peak worldwide (now, in the past, or in the near future), Mexico's production certainly is, which is going to cause a crisis in Mexico because oil makes up 40% of their gross export income. Time for another Mexican border fence?