Thursday , 22 February 2018

Why all the fuss about Gas Shale in Mexico?

Shale gas, it is natural gas that is trapped within shale formations. Shale gas has turned into an inexorably imperative source and path of natural gas in the United States since this century began, and investment has spread to potential gas shales in other parts of the world. Only 1% of U.S natural gas was coming from shale gas in the year 2000, which increased to 20% in 2010 and it is predicted that it will increase to 46% by 2035.

Texas, which is referred as the geographical wonder to the Texas oilmen. The production of natural gas is reached by the technique called as hydraulic fracturing or multi- FRAC or commonly known as fracking. In Texas the Eagle Ford Shale is mainly responsible for all the drilling and fracking. Texas gets the limelight and attention of the drilling companies as if there are no other places to look for such rich source of natural gas. But, the reality is that its neighbor Mexico does not get any share of that limelight. According to the study, Mexico ranks sixth in Shale gas reservation all over the world. If it has this much reserves of shale gas, then why it is not getting the attention like Texas?

Well the reason behind this is the politics. The Eagle Ford shale play is accepted to proceed with several miles into Mexico, where it is known as the Burgos Basin. Anyhow, while more than 5,400 wells have been sunk on the Texas side since 2008, Mexico has endeavored merely less than 25.

Pemex, the state oil organization, figures Mexico may hold more shale oil and gas than the 55 billion barrels of customary hydrocarbons it has pumped in its history. But, compared to Texas the number of wells dug were very less. So, the Mexican government passed a bill to balance this dissimilarity and opened the nation’s oil industry to private and outside sector for the first time in 75 years of Mexican history.

Though Mexico is ranked sixth in Shale gas reserves, the country’s poor pipeline infrastructure and ever increasing demand for electricity has left them to be dependent on imported gas. The worst thing is that in some parts of the country the price of natural gas is four times the price of natural gas in the United States. It is one of the main reasons Mexican authorities say the shale stores are essential to the nation’s budgetary and vitality improvement. With less expensive gas, Mexico could lower power costs at the assembling and get together plants that have turned into a mainstay of the country’s economy and that are progressively aggressive with China’s.  In Texas, fracking on the Eagle Ford Shale Play has triggered an oil hunt event as rich as the largest amount of lottery prize in the state’s history ever. After only four years, the structuring has surpassed more than a million barrels of oil every day, making it the second-most gainful in the nation, after the Permian Basin of West Texas and in front of North Dakota’s Bakken shale framing. Texas pumps more than a third of U.S. yield, and on its own the state would rank as the world’s ninth-biggest oil maker.

The greatest enthusiasm toward Mexico’s vitality update is required to hail from huge worldwide organizations, for example, Exxon Mobil and Shell that have the capital and gear to chase the most lucrative prize: tremendous oil fields buried under the Gulf of Mexico. Currently Mexico is a golden territory. If this golden territory is explored than it will open the gates of industrial revolution in this country and the whole scenario of this country will change.

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