By David Diaz
Texas Border Business
A detailed legislative look, requested by Rep. Terry Canales, D-Edinburg, and the Edinburg Economic Development Corporation (EEDC) into how Mexico’s planned, landmark energy reform will benefit the Valley and Texas economies, has been authorized by Texas Speaker of the House Joe Straus.
On Tuesday, July 1, 2014 Straus, R-San Antonio, instructed the House Energy Resources Committee, of which Canales is a member, and the House Committee on International Trade and Intergovernmental Affairs to work on developing information and strategies to help Texas prepare for and benefit from Mexico’s efforts to tap into the huge reservoir of oil and natural gas in the Mexican states of Tamaulipas, Nuevo León, and Coahuila.
The House Speaker’s assignments, known as interim charges, call for the following major actions by the two House panels: Examine the impact on Texas’s economy and businesses of the recent expansion of oil and gas production in Northern Mexico; and assess opportunities for economic growth in Texas and collaboration between Texas businesses and Mexico resulting from Mexico’s energy reform, including Mexico’s efforts to recover shale gas from the Eagle Ford Shale.
With Mexico finalizing a major energy reform predicted to generate more than $1 trillion over the next 10 years in prosperity for Northern Mexico and South Texas, Canales and the EEDC, led by Mayor Richard García, want Texas to be ready to help transform their home region into an even more influential international economic power.
“There is an energy revolution about to take place in Northern Mexico just south of the Valley and Laredo, which stands to greatly affect our region and state,” said Canales. “The Texas Legislature must be educated concerning recent events in Mexico, how this will improve energy independence for the United States, and how our economies on both sides of the border will dramatically benefit.”
Recently, Mexico’s President Enrique Peña Nieto announced that his government would, for the first time, support foreign and private investment and participation in PEMEX. This development is tied to the explosive growth and extraordinary findings known as Eagle Ford Shale located north of the Valley. “U.S. manufacturers, transportation companies, and service providers want to be closer to Mexico but maintain a presence in Texas,” Mayor Garcia reflected.
“Edinburg is right smack dab in the middle.” Petróleos Mexicanos (translation: Mexican Petroleum), better known as PEMEX, is the Mexican state-owned petroleum company, created in 1938 and under the control of the Mexican government. But PEMEX lacks the technology, equipment, and finances to find and recover new reserves, prompting Peña Nieto to push for changes in Mexican law to allow foreign companies to come into Mexico and work with PEMEX to explore new reserves. TBB
