Norwegian company surveying offshore Mexican reserves

July 28, 2015

07/28/15 UPI

Photo by Flickr user tsuda

Photo by Flickr user tsuda

SLO, Norway, July 28 (UPI) — A Norwegian energy company said it was surveying Mexican waters for the reserve potential in anticipation of a “new era” in the nation’s oil sector.

Dolphin Geophysical said Tuesday it started a seismic survey campaign off the western Mexican coast, saying the campaign coordinates with the nation’s recent sector reforms.

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Mexico Is Failing To Attract Attention From Global Oil Giants

July 17, 2015

07/17/15 Forbes

energy - gas pumpThe opening of Mexico’s oil industry was supposed to be a cornerstone of Mexican President Enrique Peña Nieto’s policy agenda. In an interview in 2013 Peña Nieto said, “Mexico is a country that has a lot of energy potential” and promised that with the influx of money from oil investors “Mexico can grow, [and] should be growing, by over 4%, 5%.” But in an environment of low oil prices Mexico’s offerings aren’t enticing international investors. On July 15 Mexico’s government auctioned off only two of fourteen possible concessions. According to a recent report from the Inter-American Dialouge, “Nine companies participated in the auction, seven of which submitted bids for one or more of the shallow-water blocks available in the southern Gulf of Mexico. A number of blocks received no offers, and others received bids that fell short of the minimum requirement for profit-sharing with the government.” While most analysts viewed the auction as a disappointment, Mexico’s Finance Minister Luis Videgaray called it “a good first step.”

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Mexico Awards First Oil Blocks in Historic Auction

July 16, 2015

07/16/15 Wall Street Journal

oil rigsMEXICO CITY—The Mexican government’s initial auction to open the oil and gas industry to private and foreign investment for the first time in almost eight decades came up short of expectations Wednesday, with successful bids made for just two of the 14 blocks tendered.

Nine companies participated in the auction. Seven companies submitted bids for one or more of the blocks in the southern Gulf of Mexico. Numerous blocks received no offers, and others had bids that were below the minimum requirement for profit-sharing with the government.

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Mexico licensing auction: Too little, too late?

July 15, 2015

07/15/15 Energy Voice

Oil Rig 2 by Flickr user tsuda Photo by Flickr user tsudaMexico may have missed the mark in opening up its energy market to foreign investors as the oil price decline continues to hit, according to a leading expert.

Derek Leith, UK head of oil and gas taxation at EY, said the fall in oil price may be a deciding factor in the historic auction for 14 licenses in the South American country.

Mexico is rebounding from a decade long decline in oil production, with analysts estimating a loss of a million barrels of oil per day.

Now Mexico is looking to US, European and Asian energy firms to bid for 14 blocks in shallow waters in the Gulf region, worth an estimated $17billion.

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Students aim to track economic benefits of immigration reform

July 7, 2015

7/6/15 Daily Bruin

immigration marchFrancisco López-Flores was talking to numerous investors in May to pitch a project to track the economic benefits of immigration reform. However, one potential investor told López-Flores not to waste his time with mere hobbies.

But for many undocumented students like López-Flores, who have had family members deported, the project was personal.

López-Flores, who graduated in fall 2014, was pitching DACAMENT ME, a project which aims to survey about 100,000 Deferred Action for Childhood Arrivals recipients to prove that immigration reform is beneficial for the United States economy.

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View from Mexico: A roadmap for relations with Canada

July 6, 2015

6/30/2015 OpenCanada.org

Photo by Flickr user I.A.M.

Photo by Flickr user I.A.M.

Mexico’s Ambassador to Canada, Francisco Suárez Dávila, spoke to the House of Commons’ Standing Committee on Foreign Affairs and International Development on June 2, discussing what he saw as priorities for the next North American Leaders’ Summit.

While he questioned why more Canadian students do not study in Mexico, and why Canada’s third-largest trading partner has been given such low priority for easing mobility,  “the good news,” he said, “is that Canada and Mexico, acting together, are making progress to reverse U.S. protectionist measures on COOL, working together on TPP negotiations, and there is also progress on visas.”

Going forward, here are the 10 topics Ambassador Suarez says are “essential for the North America agenda” — in his own words.

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Water Scarcity Could Deter Energy Developers From Crossing Border Into Northern Mexico

July 6, 2015

Norma Alicia Valdez conserves water to clean her home, located in the center of Cuatro Cienegas, a farm and business hub set amid a thriving oasis in Mexico's Coahuila state.  The city now struggles with water shortages related to water extraction for large-scale farming nearby. Valdez' family used to farm 20 hectare of Alfalfa, but when the large companies moved in around them and made wells, just north of the city, near Ocampo, Valdez said her family no longer could find sufficient water. As a result, they now only farm 5 hectare.

The state of Coahuila receives little more than 300 millimeters of rain annually (12 inches). So much water is being pumped in two farm regions near Cuatro Ciénegas to irrigate crops and care for livestock that not early enough is left to supply the pools and marshes. With every passing year, the desert claims more land, more ponds, and more streams that used to be wet.Photo © Janet Jarman/Circle of Blue.

Day 8, our final day of our on-going article excerpts. Check out the blog for more, or head straight to our website for the entire article.

Water Scarcity Could Deter Energy Developers From Crossing Border Into Northern Mexico

by Keith Schneider

Industry Still Exuberant

American energy companies spent an average of $US 15 billion a year to develop the Eagle Ford shale since 2008, more than $US 80 billion in total. Mexico authorities think it will take at least $US 100 billion to develop Coahuila’s shale resources.

That figure is well below the $US 662 billion to $US 1.02 trillion in capital spending that Goldman Sachs estimated would be needed to develop Mexico’s shale reserves in an analysis last year.

Some of the difference in cost estimates is the result of the quality of northern Mexico’s shale. Studies in the open geological science literature suggest that the Eagle Ford shale beneath Coahuila differs substantially in structure and carbon composition than the shale beneath Texas. Goldman Sachs researchers also noted in their study that due to the extensive investment in needed infrastructure “we would not anticipate any robust development taking place before 2018-2020.”

The global oil industry, ever audacious in its quest for hydrocarbons, is driven to tap new reserves where they exist, and never more so than during this century. From the icy depths of the Arctic to the perilous high-tech platforms of the Gulf of Mexico, from the isolation of Siberia to the narrow foothill Himalayan valleys of Sichuan, the global energy industry is exploring and tapping new reserves. It’s no surprise that the enthusiasm displayed by the oil and gas industry for northern Mexico’s shale potential is genuine, deep, and characteristically flamboyant.

During a Mexico shale oil and gas summit in San Antonio in February, for instance, business and government authorities rallied around the idea of Coahuila drilling and its role in a U.S.-Mexico-Canada oil and gas alliance capable of competing with OPEC for global leadership in hydrocarbon production.

“The possibility of a North American energy confederation is still something I would like to see on the table – for Canada, Mexico and the United States,” Chris Faulkner, chief executive of the Dallas-based Breitling Energy Corp. told the conference. “It doesn’t seem to be on anyone’s radar in Washington. But if we could strive for North American energy independence first, we would be the second largest oil producing coalition in the world next to OPEC, and would be incredibly formidable in determining world oil policy.  Mexico is in an excellent position. They know it.”


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