Mexico’s dry gas production declining

[IsailedawayfromFR]

Mexico is experiencing a very tight natural gas market in part because its dry gas production is declining for lack of any onshore gas-directed drilling, Ross Wyeno, Platts Analytics senior energy analyst with S&P Global Platts, said May 17 during Benposium 2017 in Houston.
Bentek Energy expects that Mexican dry gas production will decline by about 0.5 bcfd during the next year. Benposium is an annual conference hosted by Bentek, which along with Eclipse Energy Group, formed Platts Analytics.
The government of Mexico reported the country’s total dry gas production reached 3.2 bcfd in March, down 530 MMcfd from a year ago.
Unlike Mexico, US rig counts are increasing, especially for oil-directed drilling.
http://www.ogj.com/articles/2017/05/mexico-s-dry-gas-production-declining.html

That is a severe decline of over 14% per year.  Indicative of low drilling rates and reliance on other than unconventionals which have a slow decline following early production.

Seems the prospects of more US gas to Mexico is increasing as we speak.

[thackney]

I doubt very much it is from a lack of reservoirs, just a lack of investment to develop.



http://www.ogj.com/articles/uogr/print/volume-1/issue-1/beyond-us-border-mexico-primes.html

[IsailedawayfromFR]

I doubt very much it is from a lack of reservoirs, just a lack of investment to develop.



http://www.ogj.com/articles/uogr/print/volume-1/issue-1/beyond-us-border-mexico-primes.html

Yep, and they are now stuck in the cycle of diverting potential investment to purchase gas from us, which diminishes further investment.

[thackney]

U.S. Natural Gas Pipeline Exports to Mexico
https://www.eia.gov/dnav/ng/hist/n9132mx2m.htm




Liquefied U.S. Natural Gas Exports by Vessel to Mexico
https://www.eia.gov/dnav/ng/hist/ngm_epg0_eve_nus-nmx_mmcfm.htm

[IsailedawayfromFR]

One other thing:  As @Smokin Joe will attest, almost every conventional basin has some type of unconventional resources.  Not all will be exploited as being currently attractive, but they do contain hydrocarbons.

[Smokin Joe]

One other thing:  As @Smokin Joe will attest, almost every conventional basin has some type of unconventional resources.  Not all will be exploited as being currently attractive, but they do contain hydrocarbons.

Yep. Consider, too, that even with our technology, some has been missed either through not looking (assumptions of 'nothing there'), or the assumption that it cannot be produced.

[Joe Wooten]

I doubt very much it is from a lack of reservoirs, just a lack of investment to develop.



http://www.ogj.com/articles/uogr/print/volume-1/issue-1/beyond-us-border-mexico-primes.html

Don't forget the corruption tax down there that siphons away investment capital into the pockets of connected PEMEX officials.

[Smokin Joe]

Don't forget the corruption tax down there that siphons away investment capital into the pockets of connected PEMEX officials.

Between the Government and the Cartels, never mind.

[Joe Wooten]

Between the Government and the Cartels, never mind.

Another example

https://www.strategypage.com/qnd/mexico/20170530.aspx

[IsailedawayfromFR]

Another example

https://www.strategypage.com/qnd/mexico/20170530.aspx

That article contained this blurb which was really disturbing as it affects us here.

May 3, 2017: Five Texas sheriffs with links to Mexican cartels have served or are serving prison time for corruption and facilitating narcotics trafficking. The five were sheriffs in three counties which border Mexico: Hidalgo, Cameron and Starr counties.

[Smokin Joe]

Another example

https://www.strategypage.com/qnd/mexico/20170530.aspx

I found this interesting, too.

May 24, 2017: In 2016 the government spent around $966 million on internal and national security. That is the openly acknowledged figure and actual spending was probably higher by 20 percent or more. That figure is roughly twice as much as the government spent in 2014 and 2015 ($496 million and $445 million, respectively). However, analysts concerned about corruption and lack of transparency in government, note that the legislature only earmarked $42 million for “public and national security.” The government says the specific expenditures are a national security secret. Some of the funds may have been moved money from the Army and Navy and were used to fund operations.

If those operations were anything like I suspect the code word, above top secret operations on Hillary's server to be, the money was getting heavily skimmed at best, looted at worst. It would not surprise me that Miz Hillary & Co., unindicted co-conspirators on so much else, were looting the treasury and hiding it behind a curtain of Official Secrecy.