Opinion: Mexico, Energy and the Border
This opinion piece presents the opinions of the author. It does not necessarily reflect the views of Rigzone.
The following is a statement by Antonio Garza, a former U.S. Ambassador to Mexico, Counsel in the Mexico City office of White & Case and Chairman of Vianovo Ventures.
Mexican President Enrique Peña Nieto has spoken forcefully about his plan to address the challenges that have impeded Mexico's economic and social progress. And recently, he laid out his intention to address perhaps the most contentious: Mexico's energy sector.
Many believe the president will achieve his goal to allow increased private and foreign participation in the oil and gas and power sectors. That's partly due to his political savvy, but also because reform is sorely needed from the standpoint of energy production and the nation's fiscal sustainability.
The prospect of liberalization in Mexico's energy sector has long been of interest to global oil companies and service providers. The country has significant resources, deepwater and unconventional. And the national oil company, Pemex, has been unable to develop much of them, largely due to both insufficient investment capital, and technological capability.
Deepwater is thought to hold the strongest lure, but Mexico's unconventional hydrocarbons potential is great. In 2013, the country's prospective shale gas resources were estimated by the U.S. Energy Information Administration as the 6th largest in the world.
Indeed, it is in the development of these unconventional resources that the most transformative effects of Mexico's energy reform may be felt. For proof, consider the dramatic turnaround in U.S. energy fortunes due largely to new techniques that have made the country's plentiful stores of shale oil and gas economically recoverable.
123
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- USA Oil and Gas Job Figures Jump
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension