Petroleos Mexicanos (Pemex), Mexico’s state oil monopoly, is looking to extend its reach — from a solely crude-producing, Mexico-based company — to include shale oil and gas from the US. The purpose of Pemex’s new company is to generate shale oil and gas as a way to counteract Pemex’s decreased production. Pemex is the fifth-leading crude producer in the world, but rarely does business outside of Mexico.
Though Pemex has no experience generating natural gas, it will begin exploring the techniques and technologies that US gas and oil companies use to extract natural gas from shale rock. The company’s only collaboration so far has been a refinery with Shell Oil Co. in Texas; but Pemex is looking to partner with an international company, and hopes to launch its new company by the end of next year.
Pemex’s move coincides with new energy reforms made by the Mexican government. In 1938, the country nationalized private oil companies; but now, for the first time since 1938, private oil companies will be able to have a portion of oil profits.
Mexico’s waters have a lot of potential for natural gas; the US government and other experts believe Mexico to have the fourth-largest shale-rock resources in the world. For years, rather than exploring the oil and gas fields in nearby Gulf of Mexico, Pemex and the Mexican government have been concentrating on crude, to the detriment of the country’s energy production.
Pemex’s new president Emilio Lozoya aims to complete a gas pipeline that extends from the Gulf of Mexico to the Pacific Ocean. Such a pipeline will boost Mexico’s profits by allowing Mexico to sell to Asia, while also supplying inexpensive energy for Mexico. Mexico does not currently generate any natural gas, only imports it.
This goes to prove one more time that the biggest exports for the US are innovation and technology. US is capitalizing on new technologies from Apple, Google, and now energy, developed by the US DOE with taxpayer’s money, and commercialized by US companies. Innovate or Perish.
Developed and Written by Dr. Subodh Das and Tara Mahadevan
September 4, 2013
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