Three years ago Mexico opened up its oil and gas fields to foreign companies for the first time in its history. At that time the state oil company, Petroleos Mexicanos (PEMEX) invited foreign companies to drill there. The auctioned off blocks of drilling land to interested companies. Some of these blocks were in water up to 1,600 feet deep. The first significant oil find was just discovered. A Houston offshore oil company recently just discovered around 2 billion barrels worth of oil just off the Mexican coast. This past Wednesday Talos Energy reported discovering this vast oil field about 37 miles from Puerto Dos Bocas.
The well, which has been named Zama-1, begins 500 feet down and is estimated to go down 11,000 more feet. Talos president and Chief Executive Officer, Tim Duncan, estimates that it will take at least four years to develop the site. Analysts and company executives all over the world say this is a groundbreaking and historic find that will undoubtedly drive more interest in instigating further drilling projects in the area. Zama is currently one of the largest shallow-water oil finds in 20 years. All of this is extremely good news for the Mexican government.
The American oil companies utilizing the Mexican waters right now are a little nervous. This is because Trump has said some things that strain our relationship with Mexico. This includes the talk on regulations concerning Mexican illegal immigration and unfair trade. If our relationship continues to get weaker in the way, these oil companies fear Mexico may stop letting them use their fields. Talos is a small oil company which truly hopes not to lose its one truly good thing. During the original find, the experts present new it was a historic find even before it was officially found.
The excitement is already growing with big oil companies like Exxon and Chevron commencing drills in Mexican waters.
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