The World's 5th Biggest Oil Find is in Mexico
Initial results suggest the oil well holds in excess of 1 billion barrels, although the field could extend into a neighboring block. The well contains light oil and some associated natural gas. The find was announced by the UK-based Premier Oil, along with its partners Talos Energy and the Mexico City-based Sierra Oil & Gas.
The discovery has major ramifications for Mexico as a whole. Mexico has struggled with declining oil production for years, and the historic energy reforms passed in 2013 were aimed at halting that decline. The liberalization of Mexico's energy sector ended seven decades of state-owned monopoly, opening up Mexico's offshore to international investment.
Politically, the energy reform is still complicated and highly controversial. The Mexican government promised that ended state monopoly would translate to benefits for the populace, but there are few tangible gains for the Mexican people at this point.
There's no doubt that his discovery from Premier Oil will add further momentum to Mexico's energy reform efforts. It now appears that Mexico is a top global destination for oil exploration, and the rush is on. It will be no bad thing for the economy at all which has previously relied heavily on tourism.
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