home Production, Refining When Will Mexico Start To Frack For Natural Gas?

When Will Mexico Start To Frack For Natural Gas?

Mexico has fracked just a few test wells, while the U.S. has had nearly 2 million commercial ones. Mexico hasn’t yet produced shale gas, compared to the U.S., which now that the Anadarko play in Oklahoma has been added to the EIA’s Drilling Productivity Report on 7 shale plays is producing 60 Bcf/d of shale gas – over 80% of total national production (here).

Thanks to the 2013 Energy Reforms that loosened monopoly laws, Mexico’s energy sector is now far more open to foreign investment. The National Hydrocarbons Commission envisions fracking from unconventionals within a few years, but probably no significant levels until sometime after that.

There are key obstacles to producing shale gas in Mexico: a lack of knowledge on unconventional resource geology, higher costs, smaller service industry, poor regulatory framework, pipeline dearth, lack of security amid narco-trafficking, water shortages, and others. Not to mention that the recent massive demonstrations against rising fuel costs: deregulation was sold to a skeptical public as the path to “lower prices.”