Talos Energy opens first private Mexican oil well in 80 years

Historically Mexico has had a state-run monopoly on energy sources, especially for gas. But in recent years with the price of oil decreasing and demand for oil also decreasing the Mexican government has decided to start reforming its energy industry by opening up some parts of it to private companies. In May three companies – premier Oil, Talos Energy, and Sierra Oil And Gas – jointly created an offshore oil well off the Mexican coast, becoming the first private companies to do this in 80 years. This well, located in Sureste Basin off the state of Tabasco, is supposed to contain 100 million to 500 million barrels of oil. Because of the Mexican economy decreasing the Mexican government has decided to start allowing private investment into their state-run oil industry to gain some extra much-needed cash.

Talos Energy is an energy company that focuses on finding and extracting oil in the Gulf of Mexico region. Talos is a key player in the Gulf of Mexico region, investing heavily in oil reserves located there. With the Mexican oil industry reforming Talos plans on becoming a large competitor in the newly opened up oil industry. They are a private firm located in Houston. Having recently secured 600 million dollars in investment, they are now ready to greatly expand to gain new profit in new markets. With recent investment by capital companies, they are now looking into other markets to gain privates. Because they are a private company they have much more control over what they decide to do with their capital. The Mexican oil market is becoming a major focus for them.

With the Mexican oil industry opening up to private investment there will be a rush of energy companies waiting to take their slice of the pie. Some will gain contracts immediately and some will have to wait for their turn. Talos Energy is one of the company’s that do not have to wait for contracts because they are already securing their own piece of the Mexican oil industry. They are now in a position to become a key competitor in Mexico.

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