Mexican Shale Primed For Emergence Even As Washington Winds Blow

The following post is an excerpt from a report by Regulatory Research Associates (RRA), a group within S&P Global Market Intelligence. To learn more about the full report, please request a call.

Mexico's Eagle Ford and the adjacent shale plays flanking the west coast of the Gulf of Mexico are projected to contain an abundance of oil, natural gas liquids (NGLs), and dry gas on par with other premier North American formations such as Texas' Eagle Ford and Permian plays. Mexico's unconventional resources are stepping stones to heightened regional production and potential energy independence, and they are fundamental to a more secure energy foundation for the country.

Unknown to many, the Eagle Ford Shale formation continues from Texas well into Mexico, and is found widely within the country's oil and gas provinces of Sabinas-Burro-Picachos and Burgos. Probable reserves associated with the Mexico-sited Eagle Ford approximate 1.1 billion barrels of oil and 37 Tcf of natural gas at 50% confidence, according to a Texas A&M University analysis of probabilistic decline curve projections of potential wells.

The Tampico-Misantla oil province contains additional shales not directly related nor connected to those in Texas, including the Pimienta, that are much thicker and potentially more abundant than many found in the U.S.

Considering recent energy reforms in Mexico, stabilizing oil prices, and strengthening NGL prices, Mexican shale formations warrant consideration, regardless of the ultimate direction of the North American political landscape.

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