The report “Economic Impapreliminary-report-bannerct and Legal Analysis of the Shale Oil and Gas Activities in Mexico – A Preliminary Report” (See Documentwas unveiled at the 4th Annual Eagle Ford Shale Consortium Conference held in San Antonio on May 27-19. During recent months, the Bi-national Energy Committee of the AEM has collaborated with the University of Texas at San Antonio (UTSA), the Universidad Autónoma de Nuevo Leon (UANL) and the Mexico Institute of the Wilson Center in the preparation of this report. The document includes a general overview of the expected impact of the shale activities in the Northern Mexican states of Coahuila, Nuevo Leon, Tamaulipas and Veracruz and the geological basins underneath those states: Burgos, Sabinas, Tampico-Misantla, and Veracruz.

Mexico has been incorporating best practices into its new legislation and policies from all around the world. Shale is not the exception, and the country is closely looking at the Texas experience. Mexico and Texas share geology, geography and a robust bi-national business culture, all these elements should strongly influence the development of the unconventional activities in Mexico.

The Report has incorporated  a preliminary assessment of the infrastructure and human capital formation and related training certifications both required and existing in Mexico. It also has included a Business Roadmap on how to do business as an operator in Mexico. The study presents timely and important comparative views of the first three tenders of fields opened to private investment in shallow waters and in onshore fields; such as the size of the blocks, the type of exploration and production contracts applicable to each tender, local content rules and goals, and the inclusion of administrative and contractual rescission clauses in such agreements. Special considerations related to the shale activity, such as land use, water and fracking recommendations specific for Mexico are some of the steps and topics addressed by this Business Roadmap. While the report expects to provide a baseline assessment of many relevant aspects related to the shale and exploration and production activity, it also addresses specific challenges for the industry in an objective manner. A final report of this study will be released once the Mexican Government call for bids for unconventional fields.