Pemex has given conflicting statements about how much output was cut. In an e-mailed response to questions on July 8, Pemex reiterated its 1.5 million-barrel estimate. In a follow-up e-mail on July 10, the company said Bloomberg’s 4.2 million-barrel calculation was also “in the order of Pemex’s estimates” and didn’t provide details to explain the difference when asked in additional messages. At the heart of the confusion appears to be what, exactly, Pemex means by lost output. The production isn’t “lost,” Pemex says, just “deferred.” “It seems like Pemex is using a word game to avoid calling production lost,” said George Baker, an oil analyst and publisher of Mexico Energy Intelligence. “If production is being deferred after an accident, then that means the infrastructure isn’t in place or in good enough condition to pump the oil, so wouldn’t that be the same thing as lost production?” It’s not the […]