Mexico aims to unlock its energy potential
Mexican President Enrique Peña Nieto has once again confirmed his plans for reform in the Mexican energy sector that would ensure industry growth and would attract more international investors on the market. Many experts believe that liberalization of the country's oil and gas industry could be the best opportunity for Mexico to develop a globally competitive energy sector.
Mexico has significant reserves of energy, both conventional and unconventional. According to the U.S. Energy Information Administration, the country's shale gas resources are the sixth-largest in the world. However, Mexico has so far failed to realize its full energy potential, mostly because of the limited investment capital and technological capability that state-owned company Pemex has at its disposal.
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If President Peña Nieto manages to implement the reforms his administration has been planning, it is likely that the industry will focus on developing shale reserves, following the example of the United States.
According to the Houston Chronicle, the United States and Texas in particular should be prepared for the changes south of the border and should look for opportunities for partnerships and joint projects on the one hand, and for commitment to sustainability, on the other.
It would be of critical importance for Mexico to keep in mind that development of unconventional hydrocarbons through horizontal drilling and fracking brings significant economic benefits but it also has negative consequences as well, the Houston Chronicle noted.