Commentary by Eric Wilder – An article in Thursday’s Wall Street Journal reported that Mexico’s Cantarell, the second most prolific oil field in the world, is in decline.  The percentage of decline is in question, but the fact that the usually secretive Mexican oil company Pemex admits as much, is significant.

The announcement is helping keep the price of crude above $60 per barrel because oil marketers know the five largest oil fields in the world were all discovered more than two decades ago.  Further, the world is consuming two barrels of oil for every new barrel it discovers.

Mexico is the number two source of oil for the United States, behind Canada, and this announcement comes at an awkward time for the U.S. as it attempts to lessen its energy dependence on the Middle East.  http://www.ericwilder.com  http://justeastofeden.blogharbor.com