"The eighth largest oil field in the world will be dead by the end of next year."
Cantarell, one of the largest oil fields on the planet and, by far, one of the most secure sources of oil for us here in the United States, is now officially in its death throes AND this news is coming much sooner than it was expected. The inherent implications for the U.S. economy and for the potential future decline of other super-giant fields is nearly unimaginable.
"The result is that Cantarell was pumped out effectively and hard, especially after the technique to re-pressurize the field was adopted. This allowed for a spike high of daily production to be captured for several years, late in its life when a field would otherwise go into gentle decline. The result? Quicker monetization of the oil for the benefit of the Mexican state. But then the price: a catastrophic, fast crash."
Why is this important? Nevermind that it signals the death of the eighth largest oil field on the planet and, geographically, the most secure source of oil for the U.S. in a world that promises to be rife with future chaos. All that is required to clearly see
why this is a disastrous development, even in today's world, is to understand that Cantarell makes up a big chunk of Mexico's overall oil production and Mexico is ranked third among the countries from whom we import oil. Therefore, you can expect higher prices, whether you believe in Peak Oil Theory or not.