Fracking: Necessary Discussion for Mexico’s Energy Future

Hydrocarbon experts agreed on the need for a serious and informed debate on hydraulic fracturing for extracting hydrocarbons from unconventional reservoirs, considering that approximately 57% of the country's reserves are located in these deposits. “We need a serious and informed debate on the exploitation of unconventional reservoirs,” said Fluvio Ruíz, Professor, Center for Research and Economic Development (CIDE).

During his participation in the forum The Future of Energy in Mexico, organized by the Belisario Domínguez Institute of the Senate and its Energy Commission, Ruíz emphasized Mexico's heavy reliance on natural gas imports, mainly for electricity generation. He advocated for the development of a comprehensive gas supply strategy to reduce this dependency. He pointed out that currently, 70% of the natural gas used in Mexico is imported, a figure that rises to 90% or 93% when excluding the amount used by PEMEX. In this context, rather than allocating more resources to the state oil company, Ruiz suggested allowing PEMEX to use a greater percentage of its profits for exploratory activities, particularly concerning unconventional reservoirs.

Different experts have talked about the situation of fracking in Mexico. Juan Acra, President, COMENER, highlighted Mexico's significant shale oil and gas resources, underscoring the need for their exploration and exploitation, which often involves hydraulic fracturing or fracking. Acra highlighted the benefits of expanding the fracking industry in Mexico, including meeting growing hydrocarbon demands, job creation, reducing import dependence, and facilitating the transition to cleaner energy sources. 

Enrique Silva, Director of Procurement, Regulatory Consulting, described the current omission of hydraulic fracturing from the debate as a mistake. "When 57% of your reserves are in unconventional sources, it is a mistake not to bring this issue to the forefront," he emphasized. As a former official of the CNH, Silva focused on technological advancements. "Internationally, there is an evaluation of new technologies, particularly for fracking. One example is the use of microwaves in unconventional reservoirs to avoid injecting water or any other substances," he asserted. Microwaves facilitate the evaporation of hydrocarbons in unconventional reservoirs for subsequent capture, thereby preventing pollution and other socio-environmental issues.

To date, President Andrés Manuel López Obrador's proposals for constitutional reforms include restricting the State electricity company from entering contracts with private firms, prohibiting hydraulic fracturing for natural gas extraction, and ceasing new open-pit mining concessions. Furthermore, Sheinbaum vows to maintain oil production at 1.8MMb/d and a legal ban on fracking, aligning with environmental ambitions. These, however, may not be compatible with the goal of strengthening Mexico’s oil platform. 

Point 87 of Sheinbaum’s 100 Steps for Transformation proposal states: “No more concessions will be granted for open-pit mining. Existing concessions will be evaluated, provided there is community consent and no environmental impacts. Exploitation of hydrocarbons through fracking will not be permitted." Similarly, MORENA has proposed to continue the policy of not granting concessions to mining companies and to ban hydraulic fracturing. This is outlined in the 2024-2030 Nation Project document, from which Sheinbaum has adopted some proposals.