Not only is America expected to experience an “Energy Renaissance“, it appears our neighbors to the south are experiencing a boon in oil and gas too.
The U.K. based Premier Oil–in partnership with Talos Energy (Operator) and Sierra Oil & Gas–announced the one billion barrel discovery in its Zama-1 exploration well in Block 7 off the coast of Veracruz, Mexico (Gulf Coast). Interestingly enough, it was revealed that this was the “first offshore exploration well drilled by the private sector in Mexico’s history” per Premier Oil’s official press release.
“We are delighted to be announcing this significant new oil discovery offshore Mexico,” said Tony Durrant, Chief Executive of Premier Oil. “We have encountered a very substantial oil bearing interval which indicates over 1 billion barrels of oil in place, a commercial standalone development which adds materially to Premier’s portfolio of assets worldwide. It is particularly pleasing that our strategy of focusing our exploration portfolio on high impact opportunities in proven but under-drilled basins has led to this world class discovery with our first well in Mexico.”
Here’s more about this groundbreaking discovering:
- Initial gross original oil in place estimates for the Zama-1 well are in excess of 1 billion barrels, which could extend into a neighbouring block
- A contiguous gross oil bearing interval of over 335 metres (1,100 feet), with up to 200 metres (650 feet) of net oil bearing reservoir in Upper Miocene sandstones with no water contact
- Initial tests of hydrocarbon samples recovered to the surface contain light oil, with API gravities between 28° and 30° and some associated gas
Mexico ended its moratorium on state-owned oil and gas exploration in 2013–ending Pemex’s monopoly on the industry. This has opened up the oil and gas industry to foreign investors. Free enterprise works? Imagine that! Perhaps this boon in oil and gas will propel those itching to leave the troubled nation to stay? Economic opportunities south of the border can perhaps quell the issue of illegal immigration. We shall see…
It’s interesting that so-called environmentalists cheer on foreign nations whenever they discover and decide to explore avenues to extract oil and gas–but fail to apply the same logic to domestic oil and gas exploration.
Let’s hope Interior Secretary Ryan Zinke and his department can safely unleash the same energy plan here in the United States!