The U.S. supplies 81% of Mexico’s natural gas today and demand is expected to grow as the country expands its use of gas-fired power plants, said Regina Mayor, KPMG’s global and U.S. head of energy.
Mexico’s energy reform has led to at least 12 new pipeline projects with U.S. firms and a new gasoline station opened by BP, the first non-Pemex facility in the country in 80 years.
However, one major resource is not in short-term plans: shale. While the Eagle Ford stretches across the U.S. border into Mexico and the country’s 13 billion barrels of recoverable crude from shale place it at No. 8 in the world, the economics of exploitation make it more worthwhile to pursue cheap imports and offshore drilling for now.
Analysts said the 7.4 million-barrel drawdown in crude stocks in the week to June 11 to 466.7 million barrels, the fourth consecutive weekly decline, augurs for improved demand in coming weeks.
Global benchmark approached $73 while WTI moved close to $71.
Crude oil inventories fell by 9.4 million barrels in week to Aug. 28 to 498.4 million barrels, according to EIA data, compared with analysts' expectations in a Reuters poll for a 1.9 million-barrel drop.