South Texas has seen extraordinary economic activity as a result of the Eagle Ford Shale. Yet it is interesting to note, that the Eagle Ford formation continues well into Mexico near Monterrey and over to the Gulf Coast.
However, the production activity literally stops at the border at the Rio Grande. In the Eagle Ford, nearly 9,000 wells have been completed to-date. In Mexico, there have been only a handful of test wells.
It has been 75 years since Mexico nationalized its oil industry. In the intervening years, the state-owned oil company monopoly PEMEX has had exclusive rights to explore and produce oil in the country. Unfortunately, around 2004, oil production in Mexico peaked at around 3.4 million barrels per day, and has been declining steadily since then.
In fact, if current trends continue unabated, Mexico would likely become a net importer of oil in a few years.
Mexico already imports refined products and natural gas from the United States. Last year, for example, Mexico imported over 650 billion cubic feet of natural gas from the U.S., up from 333 billion cubic feet in 2010. All of this while Mexico sits on top of huge untapped reserves of oil and natural gas.