With the population in Mexico continuing to increase, and the people’s hunger for more and more technology, energy usage has been getting close to the maximum that is available. This has led to recent energy reform in Mexico, and the latest oil and gas news is expected to result in a boom for the country. Although Mexico has produced all of its own energy, and has always sold oil and gas to other countries, it has now taken steps to allow a lot more outside investment. This is expected to result in more energy sources becoming available, and more money brought into the country via oil and gas.
Although the world is supposed to be reducing the amount of oil and gas it uses in order to protect the environment, which is not what is happening. That does not give a true picture of the global energy though, as around ten percent of the energy that is used comes from renewable. Gas is also being used more in order to produce energy at power stations. Mexico has never been near the top of the list for energy efficiency, but that is what the recent reforms aim to improve on over the coming years. Man’s thirst for oil and gas is unlikely to change any time soon, especially with an expanding world population.
In recent years, Mexico’s oil industry had been on the decline, not because people no longer require the fuel, the demand is there, but due to a lack of investment by the Mexican energy industry. The industry has been run as a monopoly for over 80 years, and little has changed in the last few decades. Extraction technology that is used elsewhere in the world does not currently exist in the country. This means that millions of gallons of oil that is under current wells cannot be extracted.
One problem that they have after waiting so long for the reforms is the drop in oil prices, it now makes some of the proposed shale sites unviable. However, oil prices are fluid and they will increase again at some point in the future. The latest oil and gas news clearly sets out the future for the industry, with nine new fields that have proven reserves set to be opened up. Initially, the companies that takes on the new tenders will be allowed exploration in various areas of the country.
This is all good news for the oil industry and Mexico as it opens up more reserves and will bring in plenty of investment that can be used for improving the country’s own energy and delivery supplies. However, none of this is going to happen overnight, and it will likely take around a decade before the general public starts to see better and more stable energy supplies. Investment and improvement in the industry have to start somewhere, and the reforms are a huge leap on what the government has done in the past. Eventually, it will result in many benefits all round, and that would definitely be a good thing.
