Is Mexico Ready to Share its Oil and Natural Gas?
This segment is from Tuesday's edition of "Digging for Value", in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.
Relying on a single company for a nation's oil and natural gas production seems silly, right? Well, Mexico has been doing that since 1938, when it nationalized its oil industry and Pemex took over. Given the recent downturn in production from 2004 highs, that might all be about to change. Whether or not that helps draw the attention of large integrated oil companies like ExxonMobil Corp, Chevron Corp, etc... will depend largely upon how the agreements are set up.
Regardless of their involvement, offshore drillers are definitely prepared to benefit, especially those like Ensco plc and Noble Corp which have been operating jack-up rigs there for some time. Recent quotes from SeaDrill point to a huge opportunity for the entire industry, even for those who don't earn contracts off of Mexico's coast. For more, check out the video below.
Our stock for 2013 is also highly exposed to offshore drilling. Find out why here:
The article Is Mexico Ready to Share its Oil and Natural Gas? originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Ensco. The Motley Fool recommends Seadrill. The Motley Fool owns shares of Seadrill. 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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