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Who knew Mexico, when she shed her stereotypes of being made of poverty and a lack of education, would grow up to give other U.S gas export markets a run for their money? Yes the pun was intended. Looks like this could be anyone’s game…..or could it?

With already increasing growth, planned pipelines will further that endeavor from the United States, which will strategically empower Mexico in becoming market contender over other emerging countries.  This is because of the North American Shale production is opening a new boom and we are now well into the game with everyone wanting to take a shot.

The comparative analysis in associated overhead labor costs between Mexico and China, for example, is adversely affected by China’s increasing wage inflation, and production costs are significant. A Boston Research Firm projects that the production costs differential will weigh in based on the percentage of costs to operate against the U.S cost. China is projected to reach 95 percent, while Mexico 89 percent within the next 4 years. imagesCAZUZ8JQ

The additional consideration of the efficiency of assignment to Mexico is Hemispheric. The single point of entry and exit on our own border, Mexico’s proximity makes the associated transportation costs and relatively close geography  a one-two punch in both cost and logistic execution.

Investing in the affordability of operations in Mexico is not new to U.S Commerce, however the interest and investment opportunity has gained momentum and activity in recent years and months. General Motors announced new investments in Mexico operations just recently.

Mexico is by no means short on supply either. Constitutionally written, PEMEX is owned and operated solely by the government of Mexico. This year however, it has been the agenda of the most recent President Elect Enrique Peña Nieto to open up PEMEX to foreign capital to boost exploration and production. This includes shale. It is estimated that Mexico sits on a considerable base of over 100bn barrels of oil. This can be compared in volume to that of Kuwait.

Meanwhile, China has been hard at work to develop shale resources, however she finds herself challenged if not derailed due to lack of engineering and technology, as well as the necessary production equipment to execute the extractions and move it.plataforma-petrolera-a-contra-luz

Mexico seems to have an economic strategy not yet considered, shedding her uneducated image and coming up like the underdog to prove herself a powerful global resource with considerable potential to  knock some heavy weights off their game. 

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