Mexico opens lucrative oil fields for the first time in 75 years
Mexico opens lucrative oil fields for the first time in 75 years. Changes in a 75 year old barrier to foreign investment could push Nth American production ahead of all OPEC members except Saudi Arabia. After a decade of slumping production Mexico is looking to open up its lucrative oil fields to foreign investment. Citigroup has estimated that an invitation to foreign companies could see a doubling of production out of Mexico effectively adding another Nigeria or 2.5 million barrels a day to world supply. Analysts say an influx of Mexican supply could see the Brent price (currently US$108) drop as low as US$88 by 2017. The reform was passed by Mexican congress earlier this month, however, challenges remain around infrastructure, royalties and landholder negotiations. According to JP Morgan Chase the development could add half a percentage point to Mexico's economic growth. (VIEW LINK)
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