UTSA researchers told business leaders in northern Mexico that the Eagle Ford Shale formation doesn't stop at the Rio Grande, and it could be a game changer for Mexico's economy, and for its sagging oil industry, 1200 WOAI news reports.
Economist Thomas Tunstall at the UTSA Institute for Economic Development told the Chamber of the Transformation Industry of Nuevo Leon in Monterrey that the portion of the Eagle Ford in Mexico could contain as much as 10% of the world's recoverable shale oil reserves.
Mexico's Congress recently passed laws liberalizing that country's archaic laws which prevented private oil companies from helping exploit oil reserves in Mexico, and left Mexico's oil exploration, recovery, and sale to the government monopoly Pemex. Pemex had become increasingly corrupt over recent decades, and found itself unable to cope with new technologies like hydraulic fracking.
Tunstall pointed out that resource-rich Mexico actually had to import more than 600 billion cubic feet of natural gar from the United States last year, that is nearly double it's imports from 2010.
"Mexico has significant untapped shale oil and gas deposits within its own borders and has the potential to have significant economic impact," Tunstall said.
Tunstall says the impact of the Eagle Ford Shale in Mexico's economy could be similar to its impact on the Texas economy, including $61 billion in economic development, 116,000 new jobs, and more than $2 billion in government revenue.
"Unconventional shale oil and gas exploration is having a significant impact on global markets," Tunstall told the Mexican business leaders. "The U.S. now produces more oil than it imports for the first time since 1995. Texas has produced more crude oil recently than it has in thirty years. This is largely the result of increased production coming from South and West Texas in the Eagle Ford and Permian Basin."
Tunstall said energy reform in Mexico has the potential to transform that country's domestic oil and gas production by liberalizing rules for foreign investment and enabling the deployment of new technologies.
The exploitation of the southern portion of the Eagle Ford shale would also mean a major economic generator for historically poor northern Mexico, helping cripple the back of the criminal cartels and decrease illegal migration into the United States.