Weak Mexican Peso Shows Oil Threatens Growth, Surplus (Update1)

Carolyn Hileman* | October 24, 2007

By Valerie Rota and Patrick Harrington

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. The ban on private investment in its oil monopoly is depriving the nation of the benefits of record high prices and contributing to a slowdown in economic growth.

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