In short: Same cautionary tale as PDVSA — huge reserves but ~80% of production lost to deferred sustaining capital.
Pemex, Mexico's state oil company, is the twin example to PDVSA — huge reserves but roughly 80% of its production lost to years of deferred maintenance. Rule pairs them to show that this slow-motion decline isn't a one-off; it's the predictable result of underspending, and a preview of where the broader oil industry is heading.
10:40It was a very very very — billion US dollars a day of underinvestment — per day of underinvestment. Now this includes the stateowned firms uh and the stateowned firms are instructive. If you look at Pedvesa, the National Oil Company of Venezuela, or Pummex, the National Oil Company of Mexico, you can see what systemic underinvestment does.
In short: Object lesson in deferred sustaining capital — sitting on massive reserves yet productive capacity has fallen ~80%; what underinvestment does over time.
Pemex is Mexico's state oil company. Rule uses it as a warning, not a pick: it sits on enormous oil reserves yet its production capacity has fallen about 80%. That's what happens when a company skips the routine maintenance spending needed to keep wells producing — exactly the underinvestment he argues is now happening industry-wide.
8:04uh and this systemic underinvestment in sustaining capital will ultimately in the outy years impact the company's ability to produce. If you want um to illustrate that you look at the national oil companies of Mexico PMEX and Venezuela Penvesa and you'll see what systemic underinvestment does. Both of those countries are sitting on massive reserves of oil.
Nothing matches this filter.
Verbatim excerpts from the public transcripts (auto-pulled at each mention's timestamp, lightly cleaned). Timestamps link into the video; "source page" opens that commentator's full analysis at this row. Click a mention's header line to expand it (one open at a time). For personal study — not investment advice.