Mexico Loosense Eenrgy Monopoly, Talos Starts Drilling

Posted in Uncategorized on Jun 28, 2017

The Talos energy company announced that after the Mexican government announced that it would consider allowing private entities to invest in its energy resources, that it has secured first-drilling rights in their waters.

Since 1938 the Mexican government has had an enduring ban on private money venturing into its territories to drill for oil. For nearly 80 years private money, whether domestic or foreign, was prohibited from threatening the existing monopoly. Tat changed in 2015 when the Mexican government announced that, for the first time in nearly eight decades, it would consider allowing private investor to lobby for rights to drill. Talos, along with partners Premier Oil and Sierra Oil, lobbied the government back then and managed to secure the first-drilling rights.

Talos and partners started drilling in May of this year. The $16 million agreement allows them to continue their operations at the Zama-1 well, off the Sureste Basin near Tobasco, for 90 days. In that time Talos expects to extract somewhere between 100 and 500 million barrels of crude oil.

This first step for Talos and Mexico is being talked about as one of the biggest stories to come out of the energy industry in 2017, but it also points towards the future. Market speculators see this as an opportunity to bring in even more competition into Mexico’s resource market. This will prove beneficial for the Mexican economy and energy prices abroad, but it may increase global competition if other countries see the benefits that Mexico is receiving from this initiative and decide to do likewise.

About Talos Energy:

Talos Energy, based out of Houston, Texas, is an American oil and gas company that manages shelf and deep-water assets in the Gulf of Mexico. Since 2012 Talos Energy has increased its development of offshore exploration, spearheading efforts to discover wells in challenging waters.

With an intrepid corporate culture, Talos Energy has applied new techniques and made use of emerging technologies to excel in energy production. By expanding its influence in just five short years, Talos Energy has been able to cultivate lasting relationships in the industry as well as break into new territories with cautious nations.

For more information on Talos Energy follow them on Facebook.

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