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Mexican oil and its implications for United States energy policy

Journal Article · · Aware; (United States)
OSTI ID:6238744

The emergence of Mexico as a major source of petroleum and natural gas, both associated and nonassociated, will change its energy policies and trade policies with the U.S. With conservative estimates of 200 billion barrels of both oil and natural gas equivalent, large-scale production and supply elasticity will directly affect world supply and demand if Mexico remains outside of the Organization of Petroleum Exporting Countries (OPEC). The Mexican find, a result of OPEC price action, illustrates the potential for continued exploration of the world's continental shelves and demonstrates that resource depletion is not the basic energy problem. Political events, not resource inadequacy, will be responsible for a world-supply crunch. Mexico plans to use natural gas domestically in order to increase oil exports, but newly adopted U.S. energy policy, based on oil shortages and rapid development of synthetic fuels, needs to be adjusted to take advantage of the new supplies. Related policies on immigration, trade, and water resources need similar adjustment.

Research Organization:
National Economic Research Associates, Inc., New York, NY
OSTI ID:
6238744
Journal Information:
Aware; (United States), Journal Name: Aware; (United States) Vol. 103; ISSN AWAEB
Country of Publication:
United States
Language:
English