Talos Energy employees and partners are breathing a big sigh of relief as recently one of their big gambles have finally paid off. Due to some deregulation on oil and gas, Talos has been able to buy up offshore land at auctions around the coast of Mexico. This is something that few, if any other oil and gas companies were willing to do, and for good reason.
Mexico’s political state has been notoriously unstable for a long time. Even worse, with Trump as president, there were a lot of strong anti-immigration issues going on and increased tensions between the two countries. So creating a partnership in that climate, coupled with the great oil crash of 2014, it seemed like a long shot that drilling in the area would pay off. However, it seems that it has done just that. Talos Energy has officially discovered a well off the coast of Mexico that is estimated to be able to produce over 2 billion barrels of oil.
This big move by Talos Energy seemed like a fool’s gambit to most, but now that it has paid off so big, it is drawing the attention of other names in the industry. While there will still be plenty of deliberation as to how to set up the drilling for what looks to be a very large well, there is plenty of interest already being drummed up for other prospective drillers, which spells good news for both the American and Mexican economy.
A fairly small company with only 200 employees, Mexican officials were a little saddened initially that they could not garner the interest of bigger companies such as Exxon to start drilling in the area. Talos seized the opportunity however, and now looks to be the trend setter in the neighborhood. This power swing has made them the envy of bigger energy companies, and could start an oil drilling boom in Mexico. Only time will tell what will happen as a result of this discovery, but things are looking very positive at the moment, and neither Talos, nor Mexico show any signs of letting up.
To Read More Click Here