Talks Energy Expands with New Well
Energy markets across the globe are very competitive. Due to the level of competition in these markets, the oil markets tend to have efficient prices. While many oil markets allow for a lot of competition, others have taken steps to keep some competitors out. In the country of Mexico, a lot of effort has been made to prevent foreign companies from drilling in their waters. While this has been the effort in the past, it appears that the policy could be coming to an end.
For the first time in about 80 years, a private foreign company will be able to put a well into the waters of Mexico. The latest well will be a joint venture between companies from three different countries. Premier Oil PLC of London, Talos Energy of Houston, and Sierra Oil & Gas of Mexico will each have a role in the development and maintenance of the well.
The new well will be located in the Sureste Basin, which is off the coast of Mexico. This area has been relatively untapped for the past century. This area of the world could be a very lucrative option for those that are in the oil industry. Some estimate that there could be up to 500 million barrels of oil in this area. While it is a great find for the oil industry, it could add a lot more supply to the oil markets. This could end up pushing oil prices down even further after they have dropped quite a bit.
One of the leading parts of the deal will be Talos Energy. Talos Energy is a Houston, Texas based company that was established about five years ago. The energy company is led by a variety of people that have a range of experiences in the industry having worked for private equity firms and oil companies for the past few decades. The company focused on finding energy and drilling assets off of the Gulf of Mexico and will use the current move to better strengthen their hold on the industry.
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