The Eagle Ford Shale in Mexico is still years away from development even though over 5,000 wells have been permitted and more than 2,000 wells are producing on the U.S. side of the border. The difference is a nationalized oil monopoly versus the free market north of the Rio Grande.
Literally hundreds of companies have competed for the right to develop the Texas Eagle Ford, while PEMEX (the national oil company in Mexico) has been forced to standby and wait until the organization has a better understanding of hydraulic fracturing. Only FIVE wells have been drilled to date and 170 wells are planned over the next four years. For reference, there are more than 200 wells being drilled each month in the Texas Eagle Ford.
What will spur Eagle Ford development in Mexico?
Mexico’s president elect, Enrique Pena Nieto, has proposed energy reforms that will allow private investment into the country, but he faces a strong headwind. Both houses of congress are controlled by his opponents and constitutional reforms require a two-thirds vote for approval.
Read more at Chron.com.