Shale Drilling in Mexico Possible? Back to Blog
Mexican President, Enrique Pena Nieto, has called for his Country’s cooperation with U.S. oil and gas producers to increase development of shale resources plays. To emphasize his point, he recently showed the government owned media some photographs from space showing the nighttime vision of rigs, derricks, trucks and plant lights emanating from the Eagle Ford Shale development just across the border at Laredo. According to the EIA, the Mexican Burgos Basin west of the Rio Grande may contain 16 times more shale gas than the Eagle Ford’s 20 TCF. Some think all the Mexican President has to do is to give the green light to U.S. energy producers to drive across the border and start drilling. It’s not that easy as you probably already knew. Questions remain as to ownership percentages, rig operational control, energy pricing to expect and ultimately who will build the necessary pipeline and processing structure to do something with the discovered recourse? Add Mexico’s uncertain security issues and inability to guarantee safety to Americans working on their side of the border may make it virtually impossible for our American technology knowledge to assist their country with energy development. What a shame it would be for Mexico to delay or lose this energy resource opportunity and its long term ability to become self sufficient in natural gas.