One for the Books
Talos Energy is one of the smaller gas and oil companies out there. With only 200 employees, it is certainly not considered the biggest contender in the industry. That is why their discovery of an estimated 2 billion barrel well off of the coast of Mexico is a real Cinderella story, and nothing short of a history-altering discovery that could shift the oil industry in a big way.
It has been no secret that the oil industry was floundering for some time. In fact, in 2014 oil prices were at upwards of $100 a barrel. Only two short years later oil prices fell to around $26 a barrel. Lots of factors, including heavy-handed government regulation, and an unstable economy, lots of oil companies were cutting exploration funding.
While others were cutting their funding and spending less time looking for new wells, Talos Energy, an underdog of the industry was out there making big plays. Working with the Mexican government when nobody else would was certainly a risky play, but like they say, no risk means no reward, and Talos made the big play, and it certainly paid off.
Talos Energy is in a very strong position moving forward. That is because their discovery could spark a new kind of gold rush by big oil companies who are looking to cash in on new oil well discoveries. The fact that Talos got out there first though, is big news. They have a huge leg up over the competition, and this discovery means a big pay-off for their partners, investors, and even the people of Mexico and America.
Talos Energy and their partners are the first non-state owned oil and gas company to discover a well in Mexico in over 80 years! This is sure to spark a feeding frenzy, substantially increasing interest in shallow-water land block auctions. This means money pouring in from big oil names is a strong possibility. Mexico’s energy industry is likely to get a huge bolster from this. The entire face of oil and gas could be changing during what is nothing short of a history-altering event.
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