Keep an Eye on Mexico’s Oil & Gas Sector

  • Wednesday, August 26, 2015

by Pete Cook, President, Petroleum Connection

 

Energy reform in Mexico was all the talk a year ago. Since then, a lot of work has been done in Mexico and in the U.S. to prepare for, evaluate, and begin the bidding rounds. While the first round of bidding was disappointing, it was a first step (a very small step). Certainly the price of oil is the primary contributor to the lackluster impact of the reforms to date, but there were also flaws in the set up and requirements of the process. To Mexico’s credit, they have made some changes to the process in an attempt to make future bidding more attractive for the bidders and to increase interest in investment opportunities.

University of Texas – San Antonio’s Thomas Tunstall had a nice article on the issue in the San Antonio Business Journal yesterday. As he says “While enacting constitutional changes and passing secondary laws was a significant achievement for Mexico, the implementation phase, which has now begun, will clearly prove equally or even more difficult. “ He’s absolutely right. This will be worth keeping an eye on, for sure. It was also nice to see the U.S. open up some oil exports (“oil swaps”) with Mexico.

It would be very good for the U.S. to have Mexico become a strong oil & gas player. With the U.S., Canada, and Mexico as strong producers, we could go for North American Energy Independence. No need to send our money, jobs, or military personnel to countries that dislike Americans and freedom, and in some cases are actively supporting terrorism. Let’s keep a close eye on how things turn out in Mexico!



Return to Article List


Comments

Post has no comments.

Post a Comment




Captcha Image





Tags