Gustavo Hernandez, interim leader of Pemex's investigation and creation
division, has a lot of motivation to be idealistic. Vitality changes
introduced by President Enrique Pena Nieto a year ago could prompt
another period of thriving investment for the populace of Mexico. The
enactment affirmed a year ago put an end to a 75- year syndication on
oil and gas creation and prepared for remote financing in the vitality
division. After numerous noteworthy "false starts," little doubt remains
that true change has come to Pemex and this time it is here to stay.
Hernandez estimates that the recoverable shale assets in Mexico at what
might as well be called 60.2 billion barrels of oil. Nearly 60,000 wells
will be needed for prospective shale oil and gas developments near the
U.S border and Northeastern Mexico. Thus far only 20% of Mexico has been
explored for potential reserves leaving much room for growth,
expansion, and wealth.
Pemex was created in 1938 by President Cardenas is known as the
state-owned petroleum company of Mexico. It was created to give
exclusive mineral rights to the states and kept oil and production
facilities in Mexico. There was an immediate boycott on Mexican oil from
the international community and the private sector.
The impact of the countries oil and gas industry has been tremendous.
One third tax revenues is due to the high taxation on PEMEX, 5% of the
countries GDP is due in part from the projects and purchases of PEMEX.
This past year they have set a budget of $27.7 billion in which 86%
would be for exploration and production. Since there has been a downward
stream of crude production it is noted that reform is needed. The times
have changed drastically since the 1930’s when Mexico was second in
world oil exports.
"We are now having vital talks with players in profound water, as well
as it develop fields and different ranges in Mexico," Pemex Chief
Executive Officer Emilio Lozoya said in a meeting on Feb. 17. The vast
majority of the transient concentrate on oilfield improvement will be
focused on full-grown fields. Lozoya is hopeful about the impact new
organizations will have on creating failing to meet expectations fields
and acknowledges this an essential venture in streamlining generation
deliberations.
According to Lozoya, Mexico's shale reserves are the sixth-largest deposits in the world.
This means that foreign investment could help Pemex kick-start
production efforts and expand their technical expertise in making use of
these shale plays. The end goal for Pemex is to expand production to as
much as 4 million barrels per day by 2025 with the collaboration of the
private sector.
This comes at a crucial time as the EIA has predicted that the US crude
production is to expand to 9.5 million barrels a day by 2016. If
Canada, Mexico, and United States work together to expand their
resources they could reduce costs, build the industry, and become the
world’s cheapest source.
Mexico already has noticeable partnerships with Russia’s Lukoil, the
FMC, and a joint venture with Seadrill. All of which are crucial for the
expansion and growth of oil production in Mexico. These contracts could
generate up to $1.8 billion! The expansion of PEMEX and these new
avenues are creating new opportunities and horizons for Mexico’s economy
and oil productivity.
