Breitling Energy Corp. CEO Chris Faulkner said that Mexico could be the next hot bed of oil-and-gas activity as PEMEX allows more U.S. companies to form ventures with the country’s state-owned petroleum company.
Faulkner, is a panelist at the 11th annual Border Energy Forum in Monterrey, Mexico. He told leaders today at the symposium that South Texas’ Eagle Ford Shale formation is a promising development because it extends across the Mexican border into Coahuila de Zaragoza and parts of Nuevo Loen.
He cited the recent University of Texas at San Antonio Institute for Economic Development study that showed that in 2013, the Eagle Ford Shale provided $72 billion in gross economic impact on the South Texas economy, supporting 114,300 full-time jobs.
“Mexico is an extension of the Eagle Ford shale, so what you see going on in South Texas could happen in Mexico. They don’t have the know-how or the resources to develop it, so they’re coming to companies like Breitling Energy to partner with them to get these resources out of the ground,” Faulkner said in a news release.
While Mexico watched its northern neighbor experience a massive shale boom, PEMEX’s production dropped 25 percent in the last 10 years to 2 million barrels a day. PEMEX has been fraught with corruption and beaucracy issues, prompting Mexico’s President Enrique Peña Nieto to crack down on abuses and financial losses. PEMEX estimates that drug cartels alone were responsible for stealing $1 billion worth of oil last year from its pipelines, according to a news release.
Article Author: James Aldridge, San Antonio Business Journal