Noxal 1 is the latest miracle to occur in Mexico. Mexican President Vicente Fox announced today that a “huge” oil reserve was found off the coast of Veracruz with the potential to produce 10 billion barrels of crude oil. Mexico is the largest producer of oil in Latin America, 1/3 of their state income is derived from oil sales, half of the oil is sold to the United States, and Mexico is not in the oil cartel OPEC, which makes the United States very happy. Fox claims that the new reserves will not significantly affect output because they want to sustain their 3.4 million-barrels/day productions, and over the last two years their reserves have dropped 2%. Therefore, the reserves found will help Mexico increase their potential without significantly increasing drilling operations. Furthermore, PEMEX, the state-owned oil production company and 51st largest corporation in the world, not more than one year ago was in debt for over 42 billion dollars and was borrowing at such a high rate that a business week columnist claimed that if there were no new discoveries of crude that the company could threaten to default on their debt or it could potentially destroy Mexican finances.
http://news.bbc.co.uk/2/hi/americas/4808466.stm
http://www.businessweek.com/magazine/content/04_50/b3912084_mz058.htm
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