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Mexico's fuel fix? $1.2T to border townsMexico's fuel fix? $1.2T to border townshttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=49142014-02-18T08:09:00Z2014-02-18T00:00:00Z

TEXAS - As Mexico moves to open its energy sector to international companies, the new investments and increased activity could mean a bonanza for  border towns on both sides, attracting as much as $1.2 trillion in economic activity to the region in the next decade, according to Marcial Nava, BBVA Compass economist.

However, while Mexico will be looking to increase its supply of natural gas, this could come through exploration or through increased pipeline infrastructure to the United States.

The United States is Mexico’s largest natural gas supplier, providing 80 percent of imports. More than 60 percent of the natural gas supplied comes from Texas through pipelines that link the Lone Star state with its southern neighbor.

In 2012, the Mexican government only authorized the drilling of three shale oil and gas wells, a stark contrast to the 9,100 in the United States for the same period.

The reforms will remove the limitations that prevented international investment from developing Mexican shale plays, especially in the Burgos Basin, which is the portion of the Eagle Ford Shale that extends into Mexico.

This play could hold more than 300 trillion cubic feet of technically recoverable shale gas, while Mexico’s other shale plays — the Sabinas, Tampico and Veracruz Basins — are estimated to hold more than 1 trillion cubic feet of natural gas reserves.

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