MORE BAD NEWS FOR PUTIN, THE SAUDIS, IRAN, ETC.: Mexico’s Most Promising Shale Region Is Open for Business.

Don’t look now, but Mexico is hoping that its recent energy reforms will turn the shale boom from a uniquely American phenomenon into a uniquely North American one. This summer, Mexico opened up onshore blocks of its Burgos basin region, just south of Texas.

To date, the country’s state-owned oil company Pemex has been unable to successfully start commercial production in the basin, in part due to geology but certainly also the result of the company’s lack of expertise in shale. Now that Mexico’s oil and gas reserves are being opened up to private (and foreign) companies, there’s an opportunity for firms with the personnel, the experience, the equipment, and the culture necessary to get the country’s shale production up off (or maybe more accurately out of) the ground.

Prior to Mexico’s market reforms, Pemex was in a tailspin. The company was running the Red Queen’s race, spending more money and hiring more personnel while seeing production fall precipitously as fields matured. President Enrique Peña Nieto pushed through unpopular reforms to open Mexico’s struggling oil and gas industry up to competition, and after some fits and starts he’s seen that effort rewarded: on one day in July, there was a “world-class” oil discovery in the Gulf of Mexico by a group of private companies, a major increase in the estimated potential of another offshore field, and the successful sale of 21 out of 24 other offshore blocks on auction. In other words, there’s a lot of momentum building up in Mexico’s offshore hydrocarbon industry.

Funny how that works.