By Adam Critchley -
Canadian and US investors are likely to be among the first to participate in fracking for shale gas in Mexico, bringing their experience and expertise to a sector opened up by reforms, according to analysts.
"With permission for fracking and mining to take place simultaneously, fracking will be very attractive to Canadian investors and companies already established in Mexico," according to Jorge Pedroza, director of energy at PricewaterhouseCoopers (PwC) in Mexico.
The reform legislation states that, in the event of the discovery of hydrocarbon reserves, mining companies must allow fracking in order to extract shale, while mining concessions will not grant rights over the hydrocarbon reserves that could exist in the same zone.
Mexico is estimated to have the world's sixth-largest shale reserves, in states such as Coahuila, Veracruz and Sonora, the latter a region where various Canadian and US mining firms operate.
"I think there is an opportunity in the Canadian market for raising capital to invest in the oil and gas sector in Mexico," said Mauricio Candiani, CEO of consultancy Candiani Mining.
However, Candiani said he doesn't expect it will be mining companies that invest in shale oil and shale gas extraction, due to the different techniques and expertise required.
Canada's largest shale reserves are located in British Columbia and Alberta, and it is likely that Mexico's shale sector could interest companies and investors with experience in those regions, Candiani said.
Canada and the US lead the world in shale gas production, according to the US Energy Information Administration (EIA), and are the world's only major producers of commercially viable natural gas from shale formations.
The technical expertise would come from Texas and Canada as it would be very simple to extrapolate the geographical conditions of those areas with Coahuila and northern Veracruz, where there are geological similarities, Candiani added.
"With permission for fracking and mining to take place simultaneously, fracking will be very attractive to Canadian investors and companies already established in Mexico," according to Jorge Pedroza, director of energy at PricewaterhouseCoopers (PwC) in Mexico.
The reform legislation states that, in the event of the discovery of hydrocarbon reserves, mining companies must allow fracking in order to extract shale, while mining concessions will not grant rights over the hydrocarbon reserves that could exist in the same zone.
Mexico is estimated to have the world's sixth-largest shale reserves, in states such as Coahuila, Veracruz and Sonora, the latter a region where various Canadian and US mining firms operate.
"I think there is an opportunity in the Canadian market for raising capital to invest in the oil and gas sector in Mexico," said Mauricio Candiani, CEO of consultancy Candiani Mining.
However, Candiani said he doesn't expect it will be mining companies that invest in shale oil and shale gas extraction, due to the different techniques and expertise required.
Canada's largest shale reserves are located in British Columbia and Alberta, and it is likely that Mexico's shale sector could interest companies and investors with experience in those regions, Candiani said.
Canada and the US lead the world in shale gas production, according to the US Energy Information Administration (EIA), and are the world's only major producers of commercially viable natural gas from shale formations.
The technical expertise would come from Texas and Canada as it would be very simple to extrapolate the geographical conditions of those areas with Coahuila and northern Veracruz, where there are geological similarities, Candiani added.
No comments:
Post a Comment