Calderon Opens New Nitrogen Injection Plant For 2 Southern Fields - $110M For +25K/Day (Projected)

[hatrack]

MEXICO CITY -(Dow Jones)- Mexico's President Felipe Calderon inaugurated a new nitrogen injection plant on Thursday to help increase oil production in the country's southern region.

State oil firm Petroleos Mexicanos has seen oil output fall steadily since reaching a peak in 2004, and is turning to advanced techniques such as nitrogen injection to increase pressure in oil and natural gas reservoirs, which improves extraction rates.

Calderon said the new $110 million plant will give Pemex an additional 92 million barrels over 10 years, or around 25,000 barrels a day, according to a transcript. Pemex currently pumps roughly 3.1 million barrels a day. The nitrogen plant will feed the Jujo and Tecominoacan fields in southern region, both of which posted declining output in 2007.

Pemex has been using nitrogen injection for years to improve oil and gas production, or at least slow the decline rates at mature fields. Last September it began injecting nitrogen into the offshore Ku field, and has been injecting nitrogen into the giant Cantarell field for a decade.

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http://money.cnn.com/news/newsfeeds/articles/djf500/200801101524DOWJONESDJONLINE001021_FORTUNE5.htm

[IndyOp]

1. Like a junky who has collapsed all veins in their arms & legs - go for the veins between toes!

I don't like the addiction metaphor, because it carries with it a sense of powerlessness. But there are some aspects of the metaphor that are accurate... The spiral of increasingly self-destructive behavior - spending more and more for supplies of a substance that is harder and harder to get - is just bizarre. I caused a stir in Alberta, Canada, recently when someone asked me about the advisability of trying to extract oil by processing the tar sands they have up there. I said, "Well, junkies find veins in their toes" . The then-premier of Alberta lost it - and hasn't recovered since.



Al Gore's Fight Against The Climate Crisis

[hatrack]

2. Yep - it was through nitrogen injection that they were able to goose Cantarell to its peak . . .

And it was because of nitrogen injection (along with a lot of horizontal drilling) that Cantarell fell off the cliff.

[IndyOp]

3. Kick! (n/t)