E&P companies may do themselves, and their investors, well by commencing development of a Mexican gas-exploration strategy. "For companies that are interested in Mexico, it would be prudent to begin to prepare for an opening in Mexico [to private gas exploration and production] because there will be intense competition," says Jon Blickwede, IHS Energy Group regional manager, Mexico, Central America and the Caribbean. Blickwede addressed participants in Englewood, Colorado-based IHS Energy Group's Perspective 2001 conference in Houston. Mexico has become a net importer of natural gas in recent years. Pemex is developing a strategy of increasing nonassociated gas E&P, with the Burgos Basin just south of the Texas border in mind for some of it. However it may call on private companies to assist it in increasing gas production, if new president Vicente Fox is successful in a constitutional revision that would allow private E&P in Mexico. It is already anticipated that U.S. service companies will be relied upon heavily to support Pemex gas E&P. The country's constitution prohibits non-national ownership of reserves or production, however. Blickwede says privatization of Pemex is highly unlikely; more likely is an opening to foreign gas explorationists to help fuel the country's new gas-fired electric facilities, greater number of industrial electric-power customers and other growing gas demand.
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