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 [...]

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Russia’s record oil output is slipping, and major tax cuts are on the way. But massive investment is needed.
After climbing for years, Russia’s output has begun to drop: It was down by 0.7 percent in April. The problem is so serious that the new Prime Minister, former President Vladimir Putin, has said the issue is [...]

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Output is tanking, but there’s fierce opposition to a plan that could reward Big Oil for helping find new reserves
Reform is urgent: Oil output in Mexico, the world’s No. 6 producer of crude, is plummeting. At the Cantarell field, the country’s main source of oil, production is declining 15% annually. Pemex pumped 2.85 million barrels [...]

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The world is in a state of flux. China is growing rapidly, but is very unstable. Russia has been doing much better economically in the last few years, but there are storm clouds on the horizon. Russia oil output looks like it may start to decline shortly. The Russian military machine is decaying faster than [...]

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The reality is that as far as the current run-up in gasoline prices is concerned, other factors are more to blame: shrinking oil output from such key producers as Mexico, Russia and Venezuela; internal violence in Iraq and Nigeria; refinery inadequacies in the U.S. and elsewhere; speculative stockpiling by global oil brokers, and so on. [...]

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