Of all the attention generated over the opening of the Mexican oil and gas sector to the outside world, one consideration has been largely left out of the discussion: What does it all mean for service companies?
The energy reforms that became law in 2013 did not specifically address how service companies will run their businesses. And unlike the exploration and production sector, which was monopolized by Pemex for more than 75 years, the service sector in Mexico has long been open to many foreign and domestic companies.
However, the mere fact that there are now a number of new exploration and production companies coming to Mexico means change to the service sector is also coming. Iain Cook, vice president of secure drilling services at Weatherford, spoke on a panel at OTC that addressed what impact the reforms may have on service companies such as his.
Cook struck an optimistic tone with regard to the size of the prize in Mexico and was especially upbeat about the deepwater arena, which is seen by many as virgin territory with the most potential.
“If you draw a comparison between the US Gulf of Mexico and what has been drilled offshore Mexico, there are more deepwater and ultradeepwater wells drilled in the US waters compared to all offshore wells in Mexico,” he said. “So there is a tremendous opportunity for the deepwater drillers, a tremendous opportunity for the service companies, and a tremendous opportunity for technology implementation as we go forward.”
How Mexican Energy Reforms Have Affected the Service Sector
Trent Jacobs, JPT Senior Technology Writer
10 June 2016