Rio Grande Valley economic development leaders did not really get involved with the development of the Eagle Ford Shale play because it was deemed too far removed from the region.
That is not the case with the Cuenca de Burgos in northern Mexico, which is thought to be many times bigger than Eagle Ford.
Today, a new regional consortium is to be unveiled in McAllen today that will focus on how northern Mexico and South Texas can make the most out of oil shale development in the Burgos Basin.
“We are creating a consortium of communities, non-profits and economic development corporations that are interested in a collaborative effort to see how our region can take advantage of what is going to happen just south of Reynosa,” said Steve Ahlenius, president of the McAllen Chamber of Commerce.
Steve Ahlenius – McAllen Chamber of Commerce President
The group is being titled the Burgos Shale Consortium and the announcement will be held at the McAllen Chamber of Commerce offices at 10 a.m.
Ahlenius said Mexico is a key player in the Consortium. “Several key players from Tamaulipas will be at the announcement,” he said. Ahlenius listed four key goals for the consortium:
*Information and economic impact studies
*Business Development and Expansion
* Enhance economic ties between S. Texas and N. Mexico and expansion for Tamaulipas
Ahlenius said two key drivers have positioned South Texas to take advantage of the Burgos Oil Shale play. One is that drilling and recovery technology has now enabled oil companies to recover oil and oil byproducts that just ten years ago were not recoverable; and two, the sweeping energy reform in Mexico that now allows multinational oil producers to invest in Mexico.
“The region is now in a position, because of the location of the Burgos field and staging, to play a major role in energy and energy related businesses. In addition, we are positioned to attract major international companies that require cost effectiveness and energy abundance for their production,” Ahlenius said.
The McAllen Chamber leader said two key events will happen for the Consortium in the next four months, Firstly, the Consortium will fund an economic impact study of the impact and potential of the oil play. And secondly, a Burgos Oil Shale Consortium Conference will be held in late March of 2015 in McAllen.
Ahlenius said the cost of joining the Consortium will be $500 per entity.
Tamaulipas Governor Egidio Torre Cantú recently hosted a discussion on the potential impact of Mexico’s energy reforms on his state. The event was held at La Fogata in Reynosa and several Valley leaders were present, including state Sen. Juan Hinojosa, state Rep. Sergio Muñoz and McAllen Mayor Jim Darling.
Torre Cantú showed a power point presentation that was based on a report on energy development his office released earlier this year.
“Mexico is part of the dynamic energy transformation field. The economic activities related to the energy sector contribute 12.3 percent of the national GDP. These include from oil extraction, refining, transmission and distribution of electrical energy to making derivatives in petrochemical industry. In Tamaulipas, these activities contribute 20.5 percent of the state GDP,” Torre Cantú said.
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