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The New Oil Reality

in Non-Renewable Energy by

Washington Post has expanded its investigating reportage section, Oil Shock, and continued to dig deeper into the new oil reality and the driving forces behind the dramatic increases in oil price.

They point out remarkable events that have passed by unnoticed in most other media. For instance that earlier 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.

To summarize they conclude that this time it is different from the earlier oil crises. Global Pressures have converged to forge a new oil reality.

Read more: Washington Post

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