Mexico plans to open shale fields to U.S. drillers in 2017
Monday, October 10, 2016
After suspending bids for its northern shale fields two years ago, Mexico is pursuing the energy reform necessary to open bidding back up in March, according to FuelFix.
In the middle of a mass reform to its government-run energy sector, Mexico has been holding auctions to sell the rights to private U.S. companies to drill untapped oil fields.
Mexico has attracted 70 contracts from over 59 private companies for a total investment of $22.4 billion, which includes $10 billion for 6,400 miles of pipelines, $7 billion in exploration and production and $2.5 billion for the new seismic maps to track untapped oil and gas reservoirs.
Learn more: FuelFix > Mexico could open shale fields to U.S. drillers next year
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.