The Council of Canadians is fighting against two TransCanada Corp. pipelines – the Keystone XL pipeline and the Energy East pipeline.
This morning, the Canadian Press reports, “The CEO of TransCanada Corp. sees opportunities to build new oil pipelines in Mexico, which is poised to end its government’s monopoly on energy development and open its oilfields up to foreign players. To the extent that Mexico, already a crude exporter, is able to ramp up its flagging production as a result of the changes, it will likely be eager to send more of its crude to lucrative Asian markets — much as has been the case in Canada in recent years, Russ Girling said. ‘There’s room for Mexico to come on. I believe that Mexico is smart as well. They’re not going to be dependent on one market either. They’ll build pipeline access to their West Coast. The biggest growth market for crude oil in the world is the Asian market. India, China are going to drive the growth.'”
On December 12, Bloomberg reported, “Mexico will end 75 years of government control of its vast oil reserves after Congress approved the nation’s most significant economic reform since the North American Free Trade Agreement. …(The reform will) increase production to as much as 4 million barrels per day by 2025 (from the current 2.5 million barrels a day now extracted). …Natural gas production would almost double to as much as 10.4 billion cubic feet by 2025 from current output of 5.7 billion feet…”
That article also noted this will likely mean more fracking in Mexico. “Easing restrictions (on foreign investment) will help Pemex revive output and crack vast shale formations, said Brian Youngberg, a St. Louis-based analyst at Edward Jones & Co., who covers oil producers including Chevron and Occidental Petroleum Corp. …(He says), Mexico’s deep-water prospects in the Gulf of Mexico would be attractive to Exxon and Chevron, while shale tracts would probably lure EOG Resources Inc. and ConocoPhillips… Tony Garza, a former U.S. ambassador to Mexico under President George W. Bush…, said by phone. ‘There’s potential to attract additional investment into shale and ultra-deep waters…'”
Mexico City-based Blue Planet Project organizer Claudia Campero has commented, “The consequences of the ambitious battle to frack our country is likely to be felt in many communities.” She adds, “Most of the public debate is concentrated on whether or not bringing private companies to the game is in the best interest of the country. (But) we (also) need a much fuller public discussion on how are we going to wean ourselves off fossil fuels and deploy truly sustainable energy solutions.”
Today’s news notes, “TransCanada already has two natural gas pipelines in Mexico. The Guadalajara pipeline to the Pacific Coast and the Tamazunchale line in the east-central part of the country.”
Further reading
Controversial energy law passes in Mexico
Energy “Reform” in Mexico Will Only Pave the Road for Fracking
Teaming up against fracking in Mexico
Fracking poses a major threat to water in Mexico
Controversial energy bill debated in Mexico
