Thursday, May 30, 2024

Pemex shale gas contract in doubt after López Obrador says no to fracking

The future of a US $617-million contract for the exploration and extraction of a shale gas deposit in Coahuila may be up in the air after president-elect Andrés Manuel López Obrador voiced his opposition this week to hydraulic fracturing.

State oil company Pemex announced four months ago it had signed a contract with Texas-based Lewis Energy to extract natural gas in the Olmos field in Hidalgo, Coahuila, part of the Burgos Basin, which is an extension of the Eagle Ford deposit north of the border.

It is expected to produce 117 million cubic feet of gas daily by 2021.

But when López Obrador was asked this week by reporters about the extraction process, commonly known as fracking, he had a blunt response: “We will not use that method to extract petroleum.”

Reyes Flores Hurtado, who will be the federal government’s general coordinator in Coahuila, stated that the environmental impact of fracking will be a priority item on the new administration’s agenda.

“No business, however profitable it may be, justifies putting sustainability at risk.”

He said the Energy Secretariat will have to analyze the contracts and obligations made to determine whether they can be halted.

A researcher at the University of Texas at San Antonio pronounced López Obrador’s declaration as mostly symbolic. Thomas Tunstall told the climate science-focused website DeSmogBlog that he thinks fracking is years away from getting off the ground in Mexico.

“Best estimates are that any unconventional oil and gas production activity in Mexico is at least five to 10 years away, no matter what government policy is.”

He said a ban on hydraulic fracturing would have no economic impact in the short term. Most of the petroleum industry’s focus is on untapped conventional oil and gas reserves, which Tunstall described as substantial.

Source: Vanguardia (sp)

Have something to say? Paid Subscribers get all access to make & read comments.
A mangled Ford SUV on a highway parked next to an orange highway cone

Joaquín ‘Huacho’ Díaz, Yucatán gubernatorial candidate, injured in highway accident

0
Yucatán gubernatorial candidate Joaquín Díaz was injured in a crash and a bus headed to Sheinbaum's closing overturned in Veracruz.
Volunteers are feeding monkeys to reduce their risk of heat stroke in the Mexican states of Veracruz, Tabasco, Campeche and Chiapas.

Authorities confirm 157 monkey deaths in southern Mexico

0
Monkeys in Mexico's southern region are at risk of heat stroke due to scorching temperatures and low water levels in local streams.
Sign that says "no alcohol sales" at a convenience store

Will there be weekend alcohol bans for Mexico’s elections?

1
In keeping with longstanding election regulation, alcohol sales will be restricted in most Mexican states for much of the coming weekend.