Shale gas in mexico on shaky ground book

The prolific eagle ford shale formation in texas extends south across the border into mexicos burgos basin and accounts for twothirds of mexicos shale gas resources, which are estimated to include 545 trillion cubic feet of recoverable shale gas ranking 6th in the world 8. Shale gas deposits are generally several thousand feet below ground. Financial times bestselling author bethany mclean reveals the true story of frackings impact on wall street, the economy and geopolitics. Reduce production costs 50% or more if are you considering setting up manufacturing in mexico fill out the form or call 9155344252. The obstacles are numerous, from oil at the deepest depths of the gulf of mexico to gas shale formations in cartelcontrolled territory along the 1,200mile border with texas. Mexicos road to shale gas will be long and winding, but we know that the resource is surely there. Further research exposes montney shale earthquake risks 2019. Shale gas deposits also lie in the highly seismic states of guerrero and michoacan. Relative to 20, when the energy reform was initially passed, this timing could in fact be better for potential shale explorers as they emerge. Bp finds fertile ground for shale gas in new mexico. That has left some worried that if the trade relationship falters, mexico could suddenly be on shaky ground. These shale deposits which correlate with productive shale plays in the usa appear prospective but are still in the early stage of exploration and thus remain poorly characterized. Accurate estimation of the resource size and future production, as well as the uncertainties associated with them, is critical for the decisionmaking process of developing shale oil and gas resources.

Shale gas, youll recall, is found in deep shale layers, in this case more than 4,000 feet below new york state. These reforms sparked preventative protests in july of 2014, in which farmers and activists marched to the capital. Estimated reserves associated with existing wells and corresponding offset well. The discovery came two years after bp purchased thousands of acres. Now mexico imports 60 percent of its natural gas from the. Aug 15, 2017 mexico s ministry of energy is looking at adding shale oil and gas leases for shale basins in tamaulipas, nuevo leon and coahuila for the next round of public energy auctions, moreira said during. Parallels mexico has opened up its oil and gas fields to foreign investors.

Excitement over mexicos shale fizzles as reality sets in. Apr 29, 2014 such ground weakening could be a problem if fracking is carried out deeper in mexico close to the major fault lines. The natural gas has allowed mexico to shift its source of electricity and factory fuel. Mar 16, 2015 excitement over mexico s shale fizzles as reality sets in.

However, the low productivity of shale wells delayed largescale development of shale gas until the 1970s and 1980s when the development of new technologies made the production of shale gas costeffective wang and krupnick 20. Electric power and industry converted from burning diesel fuel and other oil products to natural gas. No limits to shale gas chemicals in mexico inter press. Apr 25, 2016 the surplus pipeline space would ensure mexico can get enough us gas on days of peak demand, as there is little room to store gas in mexico, platts says. Such ground weakening could be a problem if fracking is carried out deeper in mexico close to the major fault lines. He gives entertaining talks on fracking, shale gas, earthquakes, and global warming. In that short amount of time, fracking in america has turned the. Opinion the next financial crisis lurks underground the new. Seventysix years after nationalizing its oil business, mexico invites. Mexicos huge, untouched shaleoil fields lure wildcatters. This basin yields twothirds of all mexicos natural gas production currently.

Mexico has significant oil and gas resource potential in jurassic and cretaceous age shale formations. Mexicos ministry of energy is looking at adding shale oil and gas leases for shale basins in tamaulipas, nuevo leon and coahuila for the next round of public energy auctions, moreira said during. While other natural gas drillers are paying a premium for acreage in prized u. The eia estimates that mexico has 545 trillion cubic feet of technically recoverable shale gas, signaling that there is more than enough gas below the ground for mexico to meet its domestic needs. Apr 27, 2014 but, the economics look very shaky at current prices given what we know about the nature of the underground deposits. Assessment of the mexican eagle ford shale oil and gas. Debbie loftin, reservoir engineer, durango, colorado. As activity has boomed and job growth continues to increase, training in this.

About ian dexter palmer albuquerque, new mexico author ian palmer has a ph. Congress and the local oil industry, give an idea of the amount of chemicals used to extract shale gas natural gas trapped in underground shale rock is released by the process of drilling and injecting fluid into the ground at high pressure, which fractures the rocks. He has contributed to four books and has become an independent. In the bau scenario only one shale gas play would be developed. A revolution in the prodution of shale gas energy in mexico and the us has given north america a competitive advantage. Algeria shale gas unconventional play report wood mackenzie.

The first shale well was drilled in 1821 in fredonia new york, usa with the gas used for town lighting gwpc and all consulting 2009. Mexicos shalerich burgos basin opens to private investment for the first time source. The shale formation the two authors studied is called the marcellus which stretches from tennessee to new york. The technology of fracking in shale rock particularly in the permian basin in texas has transformed america into the worlds top producer of both oil and natural gas. This article examines the potential for shale gas production in mexico following the recent constitutional reforms. Flames burn off from a natural gas well in webb county, a common sight in south texas. New mexico bureau of mines and mineral resources openfile report 510. The tremors in northeast mexico have already triggered an emerging protest movement against the technique. Bestselling author bethany mclean reveals the true story of frackings impact on wall. But, the economics look very shaky at current prices given what we know about the nature of the underground deposits. The breakeven cost, the estimate of what it costs to get a barrel of oil out of the ground, has plunged. The surplus pipeline space would ensure mexico can get enough us gas on days of peak demand, as there is little room to store gas in mexico, platts says. Technically recoverable shale oil and shale gas resources.

Sep 01, 2018 the breakeven cost, the estimate of what it costs to get a barrel of oil out of the ground, has plunged. The study went on to say that to put this shale gas resource estimate in some perspective, world proven reserves of natural gas as of jan. Sep 03, 2014 the ongoing energy reform in mexico has been touted as opening the possibilities for a massive production increase from shale formations in the burgos and sabinas basins, largely because the. Now mexico imports 60 percent of its natural gas from the united states, according to zumma, an energy consulting firm in mexico city. Mexicos prospective shale gas resources are in the sixth position globally 545 trillion cubic feet, based on the information provided by the us energy information administration 2015. Home further research exposes montney shale earthquake risks. Mexico lacks water to frack for shale gas inter press service. Fracking near the texas border has northern mexico trembling.

Aug 19, 2017 mexico s road to shale gas will be long and winding, but we know that the resource is surely there. Mexico is currently dependent on gas imports from the u. The bulk of mexicos shale prospects appear to lie in the northeastern sections of the country, where infrastructure is often largely undeveloped. Summary of risks to ground water and mitigation measures. No private investment allowed anywhere in the chain. This article focuses on fracking in new mexico and statespecific, rather than federal, regulation of the process. Algerias mature upstream industry, with its extensive operational experience and sophisticated supply chain, provides a good platform to develop a new shale gas play.

Oil and gas reserves have decreased during the last 14 years. Shale plays in new mexico colorado school of mines. Trumps antinafta stance is on a collision course with. Shale gas energy in mexico and the us create advantage. Mexico lacks water to frack for shale gas inter press. Shale gas is natural gas that is found trapped within shale formations. Financial timesbestselling author bethany mclean reveals the true story of frackings impact on wall street, the economy and geopolitics. An assessment of 7 shale formations in 41 countries outside the united states. Opinion the next financial crisis lurks underground the.

Mexican officials have begun to explore importing liquid natural gas from countries. Earlier this week, bp announced it had discovered what it is labelling a significant new source of u. Theory, technologies, and challenges provides users with information on how shale oil and gas exploration has revolutionized todays energy industry. As of this date, however, the state did not track the number of wells that were hydraulically fractured. The bestrun companies, which often focus on the permian, are now making some money. Aug 07, 2017 while other natural gas drillers are paying a premium for acreage in prized u. As activity has boomed and job growth continues to increase, training in this area for new and experienced engineers is essential. Opinion the next financial crisis lurks underground.

Energy information administration ranked mexicos reserves of shale gas as the worlds sixthlargest after china, argentina, algeria, the united states and canada. No limits to shale gas chemicals in mexico inter press service. Mexicos prospective shale boom will be a long time coming. The niobrara shale of the raton basin is an emerging gas play and has been productive from five vertical exploratory wells. From a geological standpoint, the avalon extends spatially across eight counties.

Bp says it believes its holdings in a littleknown shale play in new mexico could the next hot spot for natural gas production. Mexico is sitting on what many think are vast shale oil and gas resources in the north, which are thought to be extensions of the eagle ford shale in south texas. Date celebrated as national holiday until this day. Fraught with risk, but loaded with upside is the mantra of the day as operators tackle the southeastern new mexico avalon shale. In the high scenario an additional play was to be developed. Particularly, proven and potential natural gas reserves 2p dropped. He gives entertaining talks on fracking, shalegas, earthquakes, and global warming. We are delighted with the initial production rate of this well, said dave lawler, ceo of bps u. In our latest report, our analysts explore the likelihood of mexico experiencing its own shale boom. The ongoing energy reform in mexico has been touted as opening the possibilities for a massive production increase from shale formations in the. The eagle ford shale is the formation with the greatest expectation in mexico given the success it has had in the us and its liquidsrich zone. I would highly recommend fracman to anyone who would enjoy an inspiring christian story with a bit of romance and insight into the potential connections between fracking and earthquakes in the shalegasoil industry. Resource categories when considering the market implications of abundant shale resources, it is important to distinguish between a.

Mexican situation for mexico, the extraction of shale gas needs a deep study regarding its impacts on environmental, technical and social aspects, looking for efficient and prosperous benefits out of the extraction and usage of the resource. As of march 20, the total prospective resources p90p50p10 for the eagle ford shale in mexico are estimated to be 5271,97,268 mmstb of oil and 1737217 tscf of gas. This means that in order to tap the countrys bounty of shale oil and gas, roads, housing, rail, pipelines and many. Jun 26, 2017 that has left some worried that if the trade relationship falters, mexico could suddenly be on shaky ground. We are delighted with the initial production rate of this well, said dave lawler, ceo of. Energy information administration, based on petroleos mexicanos and natural gas intelligence in july 2017, mexicos national energy ministry sener opened the onshore portion of the burgos basin, a shalerich basin in northeastern mexico, for. However, the upstream sector is tightly controlled by the state and is well known for its harsh fiscal terms. As of march 2, 2017, there were 29,996 approved oil wells and 27,780 approved natural gas wells in new mexico.

Mar 27, 2017 the natural gas has allowed mexico to shift its source of electricity and factory fuel. This means that in order to tap the countrys bounty of shale oil and gas, roads, housing, rail, pipelines and many others will have to be built out first. Shale gas production considered two scenarios of shale gas production starting from 2016 were included in the energy strategy 2012. Since the secondary legislation to the mexican energy reform law was passed, opening the countrys electricity and hydrocarbon sectors to private participation for the first time in over 75 years, participants in the energy industry have turned their attention to mexico. Evaluation of mexicos shale oil and gas potential onepetro. Mexicos shalerich burgos basin opens to private investment. Sep 27, 2016 the first shale well was drilled in 1821 in fredonia new york, usa with the gas used for town lighting gwpc and all consulting 2009. The bone spring formation has seen extensive development within the avalon shale, but horizontal drilling has mostly. Mexico hopes to benefit from its own shale boom wood. This is a horizontal oil and gas play that can be on the edge from an overall net present value npv standpoint, even though the typical percentage of liquid hydrocarbons is high. Do you believe in magic can mexico spur gas production.

Given the shift to using gas over oil, significant production is essential the countrys energy. Bp unlocks a new shale gusher in new mexico bloomberg. That imported lng is serving as a stopgap until new gas pipelines within mexico come online. Shale gas in mexico on shaky ground the americas the.