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Obama lacks leadership on Keystone XL, API says
by Daniel J. Graeber
Washington (UPI) Apr 25, 2013


Mexico oil sector decline drags on economy
Washington (UPI) Apr 25, 2013 - Mexico's fiscal health is in jeopardy because of a declining rate of oil production, an analysis from the U.S. Energy Information Administration said.

EIA updated its country profile for Mexico, noting the oil sector accounted for 13 percent of the country's export earnings last year.

Mexico is one of the top 10 oil-producing countries in the world, with an estimated 10 billion barrels of proven reserves as of 2013.

EIA said Mexico produced an average 2.5 million barrels of crude oil per day, a level that's more than 20 percent less than its peak from 2004-09.

"Notably, crude oil production in 2013 was at its lowest since 1995 and continues to decline thus far in 2014," it said in its Thursday report.

EIA said the decline in oil production was having a direct impact on the health of Mexico's economy, a situation exacerbated by a declining export market.

EIA said that, despite Mexico's status as a crude oil exporter, its economy is still heavily dependent on imported petroleum products. Last year, the country was a net importer of petroleum products and relied on the United States for 44 percent of its motor gasoline.

The American Petroleum Institute said the White House is showing a lack of leadership by not pushing the Keystone XL oil pipeline forward.

The U.S. State Department last week said a decision on whether or not to issue a federal permit to pipeline planner TransCanada to build the cross-border section of Keystone XL was on hold because of route issues in Nebraska.

A Nebraska court is reviewing the legitimacy of a law that gave Gov. Dave Heineman authority over the pipeline in the state. On Monday, White House spokesman Jay Carney said the process "can't continue until the situation in Nebraska is resolved."

Cindy Schild, a senior manager for downstream operations at API, an energy industry lobby group, said its polling showed most people were in support of the pipeline. President Obama, she said, was bowing to pressure from "shrill extremists" instead of the workers who would benefit from the pipeline's construction.

"The president's lack of political leadership is hurting middle class Americans," she said in a statement Thursday.

Opponents of Keystone XL worry the more viscous form of Canadian crude oil designated for the project poses a grave threat to the environment. An early 2014 report from the State Department found that threat would exist with or without the pipeline.

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