Believing that energy reform is crucial to the nation's future economic growth, the Mexican government plans to encourage more foreign investment in its oil and gas sector, according to a recent article on Rigzone.com.
Mexico has a large reserve of natural gas underground and offshore, but it has thus far failed to utilize them to their maximum potential. In fact, according to the news source, the country is a net importer of natural gas, piping in 2.1 billion cubic feet in 2012. And yet, the country has faced numerous gas shortages over the past year and a half.
"Energy reform is considered the mother of all reforms, given that the sector is a huge driver for job creation and economic growth," Dr. Duncan Wood, director of the Mexico institute at the Woodrow Wilson International Center for Scholars told the news source.
Petroleos Mexicanos (PEMEX), the state-run energy monopoly, requires more investment and technology if it is to reach its new goal of boosting oil production to more than 3 million barrels per day, according to the article. In order for this to happen, however, Mexico's constitution will need to be changed to allow the foreign investment. Until this occurs, the news source suggests that oil and gas discoveries in Mexico will continue to decline.
This is an instance in which proper equipment is necessary for the industry to grow. As PEMEX searches for new wells to reach this benchmark, it may benefit from using a hydraulic jet pump to complete drill stem testing and improve recovery rates.