Mexico Sets Controversial Plan to Open Border to Foreign Oil Companies

This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.

Due to the decline in Mexico's energy production, the government has decided to allow foreign oil companies to team up with state-owned Pemex to help right the ship. Not everyone in the country is on board, however. Motley Fool analyst Taylor Muckerman believes that Mexico and Pemex could learn a lot from how Brazil and Petrobras have handled auctions in the past considering the intimate ties between the government and its national oil company. He also believes that a more sure way to play this news from an investor's standpoint is to invest with service companies. He highlights Ensco and Hercules Offshore . Find out why in the video below.

Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!

The article Mexico Sets Controversial Plan to Open Border to Foreign Oil Companies originally appeared on Fool.com.

You can follow Taylor on Twitter @t_Muckerman.Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Ensco. The Motley Fool recommends Petroleo Brasileiro S.A. (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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