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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Aggie who wrote (18046)	12/22/2013 12:28:35 AM
From: E_K_S	Read Replies (1) \| Respond to of 34328

Hi Aggie - Mexican Oil Development I would think that some of the possible projects might include different infrastructure projects including pipelines, storage tanks and refineries. Did any of the recent legislation discuss the plans for the build-out of the necessary infrastructure to get the oil to market? Is this going to be a private sector proposition and/or some type of government project? What's your thought for the best way to participate in this emerging growth; buy the integrated oils? Several years ago I went through this w/ Brazil and PBR until the government starting making too many demands to their outside private partners. I eventually sold everything and moved my money into several of the U.S. larger shale projects and w/ the larger integrated oil companies that were not involved (too much) in Brazil. It looks like they are on a fast track to begin development. Any thoughts or ideas on investment opportunities? I do own some pipeline companies that operate at/near the mexican border (ie El Paso pipeline now a KMI subsidiary) and Sempra Energy (SRE) which I believe has a subsidiary company that owns/operates NG pipelines into Tijuana. I think there is even a LNG export terminal (or plans for one) south of Tijuana with MRO and Golar LNG Limited but this was originally proposed in early 2002. I am not sure what has been built but these may be other opportunities to pursue. EKS

To: Aggie who wrote (18046)	12/22/2013 12:32:43 AM
From: JimisJim	Read Replies (2) \| Respond to of 34328

I have been watching this ever since SRE built their original LNG import terminal just south of San Diego in Baja. They have since begun converting it to liquefaction/export - still needing Mexican gov't approvals but less cumbersome and easier to bribe around them -- I firmly believe this will be the first (only? only 1 of 2 with maybe one in BC, Canada area and/or one in Alaska) west coast LNG export terminal. Ever since our Enron-contrived California energy shortage last decade, pipeline capacity to SoCal in particular from points north and east (including more from TX) has significantly increased, as has the cross-border pipelines that originally supplied ng to San Diego/SoCal power plants, but now go in both directions and have the ability to change direction. All of this is what led me to initially invest in SRE (when I thought we were running out of ng in No. Am.) in the $20s... and since then, added in the $50s when I guessed/gambled that they would be the 1st LNG export terminal on this coast and saw that there was adequate capacity to support LNG exports. SRE has a very "close" working relationship with Mexico and I am anticipating they will leverage this profitably with the re-opening of the Mexican oil/gas industry. From my days with VRC back in the '80s and '90s, it was apparent that Mexico was becoming more reliant on US equipment, consultants and expertise to keep Cantarell production from collapsing completely due to over-stimulation and other mis-management of the field -- this being one of the largest oil fields in the world. Even though they have switched over to nitrogen vs. water injection, production is still declining, though initially the nitrogen stimulation allowed it to reach its peak production 12-14 years ago.