When Mexico's new president was running for office, he said he would ban fracking in his country -- even though the prolific Eagle Ford in Texas extended south into northern Mexico.
Yesterday Argus Media reported that President AMLO has had a change of heart. He will allow -- or should we say, his regulators will allow -- Pemex to frack .... drum roll .... four wells.
Why the change of heart? AMLO says the technology has gotten better, has gotten safer. LOL.
Some data points:
- Pemex will invest up to $203 million under the two-well drilling scenario.
Let's do the "cut and paste" from the article:
Pemex will invest up to $203 million in the exploration plans under the two-well drilling scenario, with the potential to incorporate up to 201 million boe into national reserves.So, the data points:
- two wells
- $203 million (am I missing something here?)
- two wells
- 201 million boe
For newbies: in the Bakken,
- about $8 million / well
- EUR for a single well: 1.3 million bbls crude oil
Mexico's 3P oil reserves dropped by 40 percent to 25.5 billion boe from 42.2 billion boe between 1 January 2014 and 1 January 2018, according to the annual reserves report, according to data published just last week.