<edit/add> Iso: I should clarify a bit... if those same prospects they are talking about in Mexico were located in the US? Those optimistic/bullish predictions would be too conservative -- production would more than double. I know firsthand that the oilpatch is not a popular place to be with many in the US politically, etc., but even here those resources would find a way to be developed much more quickly and with a lot more certainty than in Mexico, IMO. The biggest barrier to realizing the potential of Mexican energy resources is that they are located inside Mexico, IMO... I love Mexico and visit there quite a bit, but the corruption, etc. in the Mexican oilpatch is on a par with their drug cartels -- in fact, the two compete for which is the bigger monetary enterprise inside Mexico. The amount of money we're talking about to actually develop the Mexican resources is so staggering, I wouldn't be surprised if the drug cartels don't take a major stake in them -- if they already haven't.
In terms of their oil infrastructure and capital equipment, Mexico is very 3rd world when it come to the equipment, infrastructure and manpower/expertise... in the same league as Russia or Venezuela -- in dire need of not just spare parts, repairs and expertise, but completely new capital equipment and infrastructure along with people who actually are expert in their use. |
