Mexico Would Need $108 Billion and a Decade to Scale Fracking, Industry Says

Overview

• Merlín Cochran of Amexhi said Thursday that developing fracked gas in Mexico would cost about $108 billion and take roughly ten years to reach peak production.
• Amexhi estimates that meeting current demand would require roughly 24 new unconventional gas projects to produce about 9,000 million cubic feet per day.
• Private companies have expressed interest in nonconventional gas but say projects need fiscally viable terms and internationally competitive contract models to attract capital.
• The federal government has created a scientific committee to assess environmental and technical risks and Pemex has already awarded 10 mixed contracts as one path for private participation.
• The $108 billion figure equals about 1.4 times the investment drawn after the 2013 energy reform and raising domestic output could lower U.S. imports over the next decade if projects prove viable.