Mexico Sets Controversial Plan to Open Border to Foreign Oil Companies

Taylor Muckerman and Joel South
fool.com
December 18, 2013

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This segment is from Tuesday’s edition of “Digging for Value,” in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.

Due to the decline in Mexico’s energy production, the government has decided to allow foreign oil companies to team up with state-owned Pemex to help right the ship. Not everyone in the country is on board, however. Motley Fool analyst Taylor Muckerman believes that Mexico and Pemex could learn a lot from how Brazil and Petrobras (NYSE: PBR ) have handled auctions in the past considering the intimate ties between the government and its national oil company. He also believes that a more sure way to play this news from an investor’s standpoint is to invest with service companies. He highlights Ensco (NYSE: ESV ) and Hercules Offshore (NASDAQ: HERO ) . Find out why in the video below.

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