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Thirst for petroleum forges a new oil reality

Posted by Matt in July 27th, 2008

Drivers unlikely to see gas prices retreat to levels enjoyed for a generation

The two events, half a world apart, went largely unheralded.

Early this month, Valero Energy in Texas got the unwelcome news that Mexico would be cutting supplies to one of the company’s Gulf Coast refineries by up to 15 percent. Mexico’s state-owned oil enterprise is one of Valero’s main sources of crude, but oil output from Mexican fields, including the giant Cantarell field, is drying up. Mexican sales of crude oil to the United States have plunged to their lowest level in more than a dozen years.

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Map for Port Arthur, Texas

[Countries link to CIA Factbook. States link to Wikipedia.]


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