With proven oil reserves of close to 12 billion barrels, Mexico’s oil supply has garnered Pemex the status of eleventh-largest petroleum company in the world. In 1995, the company averaged 2.7 million barrels of crude oil production per day, and eventually peaked at 3.8 million barrels daily in 2004 before falling to 3.5 million per day in 2007. Oil production fell a further 9.2% in 2008, and at year-end the government finally managed to legislate an energy reform aimed at reversing this trend. The drop in output has, in large part, been blamed on Cantarell Field’s natural decline. But fingers have also been pointed at the administration and Pemex’s failure to make any significant reinvestments in exploration and production since the 1980s. Despite the monumental revenues generated by Pemex (over $100 billion in 2008), it has had to pay a large portion to the federal government to cover more than two-fifths of the national budget.