CALGARY—Mexico is looking for Canadian companies to invest in its energy sector, which is opening up to outside investment after more than 75 years of government control.
The country doesn’t have the technical know-how to exploit its unconventional sources of energy and Mexican government officials are in Calgary to invite Western Canadian companies to contribute.
Mexico has huge potential in so-called unconventional oil and gas that’s trapped in difficult-to-access rock formations
Oil production from Mexico’s conventional resources has been on the decline for a decade and the country currently imports natural gas, mostly from the U.S., despite its vast potential.
A report by the Canada West Foundation and Mexican economic think-tank IMCO says the biggest opportunities for international players are in shale oil and gas—a perfect fit for Canadian service and equipment companies.
However, security concerns and uncertainty over the energy sector reforms are working against the country, which has geographic proximity and existing trading relationship with Canada.