O&G Market Notes (June 2016)
Over the past month, two major energy-related stories emerged from Mexico. First, the continued progress being made by the Mexican government in pursuing true constitutional energy reform. The second story is related to air quality. For years, Mexico, has been heavily dependent on its own oil for electric generation. Now, Mexico sees the need to begin addressing its crippling air pollution.
But, there’s a third story, with more far-reaching implications—natural gas. Mexico has an abundance of this fuel, particularly in its southern region and the Burgos Basin. By some industry estimates, shale gas reserves in the country exceed 545 TCF, fifth in the world—yet Mexico is doing little to develop them.
In this month’s issue of O&G Market Notes, Bob Gibb outlines Mexico’s bright future as a potential gas producer/exporter and its direct impact on the Mexican economy and the United States.