By Bob Adelmann
Four years ago, Enrique Peña Nieto promised while running for president of Mexico that, if he were elected, he would open the country’s energy industry to the private sector. At the time, his promise was almost laughable. . .
But within two years, he had accomplished the impossible: Articles 28 and 29 in his country’s constitution were modified, allowing private producers in to explore, extract, refine, transport, store, and distribute crude oil and natural gas. . . .
International Frontier Resources Corporation (IFRC), a Canadian oil development company, estimated those untapped Mexican reserves “could total as much as 115 billion barrels … [thanks to] the denationalization of 914 oil and gas leases.”
According to the CIA’s 2015 World Factbook, Mexico had less than 10 billion barrels of proven reserves as of December. If IFRC is correct, Mexico’s new proven reserves would jump to 125 billion barrels, placing it ahead not only of the United States (with 36 billion) but also the UAE (98 billion), Russia (103 billion), and Kuwait (104 billion).
As Stafford concluded: “Right now, there is nothing bigger than Mexico when it comes to oil and gas sales. We’re talking about North America, large oil reserves, good infrastructure, and discoveries that are already in development.”
Once the heavy hand of the state is lifted from the economy, it’s positively astonishing what the free market can accomplish. Not only investors, but also lovers of freedom, are watching events unfold south of the border with great anticipation.