Monday, March 17, 2014
Railroad Commission of Texas (RRC) commissioner David Porter traveled to Mexico in early February to meet with officials and discuss energy policy as the country works to reform regulations governing the oil and gas industry. In December, the Mexican Congress passed a constitutional amendment that would open the oil and gas sector to private participation for the first time in 75 years. Officials are now in the process of formulating the statutory and regulatory framework to support the change.
“The Texas Railroad Commission has successfully regulated the oil and gas industry for almost a century and is viewed throughout the world as a model for thorough, effective energy regulation,” Porter said. “We’ve known for a while that the Eagle Ford Shale in South Texas doesn’t stop at the Rio Grande border, and I’m glad to see our neighbors to the south take advantage of the tremendous potential that energy production affords local and national economies. I look forward to having productive discussions on the opportunities and challenges associated with unconventional resource plays and sharing my experience and the experience of the Railroad Commission in regulating a booming oil and gas industry.”
While the U.S. has greatly benefited from the development of shale oil and gas, Mexico has not capitalized on its hydrocarbon potential due to the previous restrictions on investment, notes RRC. In 2012, more than 9000 shale oil and gas well permits were issued in the U.S., but only three such permits were issued in Mexico. Projections show that these new energy reforms will benefit the country by attracting about $10 billion of foreign direct investment, creating 500,000 additional jobs in 2018, as well as decreasing the prices of electricity and gas.
While in Mexico, commissioner Porter met with several top energy officials, including Rep. Javier Trevino, secretary of the House Energy Committee; Rep. Marco Antonio Bernal, chairman of the House Energy Committee; Sen. David Penchyna, chairman of the Senate Energy Committee; Francisco Xavier Salazar, chairman of the Energy Regulatory Commission; Juan Carlos Zepeda, chairman of the National Hydrocarbons Commission; and Pedro Joaquin Coldwell, secretary of energy.
“The Texas Railroad Commission has successfully regulated the oil and gas industry for almost a century and is viewed throughout the world as a model for thorough, effective energy regulation,” Porter said. “We’ve known for a while that the Eagle Ford Shale in South Texas doesn’t stop at the Rio Grande border, and I’m glad to see our neighbors to the south take advantage of the tremendous potential that energy production affords local and national economies. I look forward to having productive discussions on the opportunities and challenges associated with unconventional resource plays and sharing my experience and the experience of the Railroad Commission in regulating a booming oil and gas industry.”
While the U.S. has greatly benefited from the development of shale oil and gas, Mexico has not capitalized on its hydrocarbon potential due to the previous restrictions on investment, notes RRC. In 2012, more than 9000 shale oil and gas well permits were issued in the U.S., but only three such permits were issued in Mexico. Projections show that these new energy reforms will benefit the country by attracting about $10 billion of foreign direct investment, creating 500,000 additional jobs in 2018, as well as decreasing the prices of electricity and gas.
While in Mexico, commissioner Porter met with several top energy officials, including Rep. Javier Trevino, secretary of the House Energy Committee; Rep. Marco Antonio Bernal, chairman of the House Energy Committee; Sen. David Penchyna, chairman of the Senate Energy Committee; Francisco Xavier Salazar, chairman of the Energy Regulatory Commission; Juan Carlos Zepeda, chairman of the National Hydrocarbons Commission; and Pedro Joaquin Coldwell, secretary of energy.
