facebook
twitter
rss
account
search
search
 

Report: Mexico ignoring shale natural gas

Oct. 3, 2013 at 7:58 AM   |   Comments

HOUSTON, Oct. 3 (UPI) -- Mexico may be ignoring some of the natural gas deposits thought to exist in shale by a lack of investments, a financial review said.

A report from Barclays Capital found natural gas production in Mexico is in decline in part because state-owned oil company Petroleos Mexicanos, or Pemex, is focusing more of its budget on oil exploration, the Platts energy news service reported Wednesday.

Mexico hosts more than 500 trillion cubic feet of technically recoverable natural gas reserves in shale, the U.S. Energy Information Administration says. It relies almost exclusively, however, on conventional natural gas for its energy needs.

Barclays said Pemex is assessing the shale natural gas potential but has set aside "only a small portion of its budget to these resources."

Mexican President Enrique Pena Nieto outlined a proposal in August to revive the oil and natural gas sector by bringing in more foreign investments. His proposal keeps Pemex in state hands and offers foreign companies a chance to share profits. They are not, however, afforded the right to keep any of the natural reserves produced in the country under his provision.

Platts reports Mexico is expected to double the amount of natural gas it imports from the United States by 2016.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Some iPhone users getting checks for liquid damage Some iPhone users getting checks for liquid damage
2
Boeing announces job relocations, business unit consolidation Boeing announces job relocations, business unit consolidation
3
Outrage over FERC decision on LNG exports Outrage over FERC decision on LNG exports
4
Coca-Cola company, other soda makers, pledge to cut calories Coca-Cola company, other soda makers, pledge to cut calories
5
Thailand requests FMS sale of Lakota helicopters Thailand requests FMS sale of Lakota helicopters
Trending News
x
Feedback