Oct. 22 (Bloomberg) -- Mexican President Felipe Calderon is delivering a grim message: The largest oil producer in Latin America is running out of crude. ``Our oil reserves have been consistently falling,'' and the decline is ``severely threatening'' government finances, Calderon told a nationwide television audience in an address last month at the National Palace. That's the same place where seven decades earlier Lazaro Cardenas cemented the anti-American legacy of his presidency by nationalizing the petroleum industry.
EDIT
The drop in production is hurting economic growth by reducing funds to improve highways, bridges and ports, Cervera said. Oil provides about 40 percent of government revenue and the slowdown contributed to a 47 percent decline in the nation's surplus in August, according to the Finance Ministry. Mexico's economy has grown at an average annual pace of 2.8 percent since 2002, down from 4.4 percent during the previous five-year period.
Output has dropped to a seven-year low of 3.12 million barrels a day as the state monopoly Petroleos Mexicanos fails to develop new reserves to offset dwindling production at Cantarell, the world's largest offshore field.
EDIT
``Oil production in Mexico is declining and declining fast,'' said Alberto Ramos, a Latin America economist in New York with Goldman Sachs, the world's largest securities firm. ``What is needed is a serious energy reform that would allow Pemex to partner with other companies.''
EDIT
http://www.bloomberg.com/apps/news?pid=20601086&sid=anVBE7A20LKU&refer=news