Mexico Hydrocarbons Negative Wave 2 - Gonzaga 2013

8/9/2019 Mexico Hydrocarbons Negative Wave 2 - Gonzaga 2013

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Gonzaga Debate Institute 13Brovero Lundeen – Mexico Hydrocarbons Neg Supplement

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Solvency – &etroc-emicals

'exas solves t-e petroc-emical industryEne.ly competitive industry due to tec-nicaladvances and s-ale boom'-ompson4 Qederal Reserve Ban9 o) Dallas business economist4 (FJesse, ?ourt) +uarter 2812, ?edera "eser#e ;an o: Da as, %;ooming ()a e Gas !roduction Dri#es T e0as!etroc)emica (urge, )tt $$$'da as:ed'org assets documents researc) s$e 2812 s$e1284)' d: , *ccessed7 12 13, J>L

" -ig-ly pro)itable petroc-emical industry -as reemerged in J 'exas )rom t-e boom in %8S8 J s-ale oil3and3gas e0 oration, Tcreating an internationally competitive J sector t)at can roduce a #ariety o: roducts inc uding

astics at a o$er cost'1 T"dvances in t-e exploration o) J s-ale , t)e source roc :rom $)ic) oi Tand gas )a#esee ed :or mi ions o: Tyears, -ave broug-t to mar9et ne. supplies o) oil4 natural gas and natural gas J li2uids FPGMsL suc) as et)ane, a ey T etroc)emica :eedstoc or in ut' )is Tmodern-day gus)er $as made possible J by )ydrau ic :racturing Fa so no$n as T)rac9ing and -ori;ontal drilling in t)e T&nited (tates')ese tec-nologies -ave -elped J reduce t-e price o) natural gas , $)ic) T$as once in ine $it) oi , and ed to T t)e

roduction o: o$er-cost PGMs TF>)art 1L' ;ecause &'(' etroc)emica T :irms common y use PGMs :or :eedstoc ,

t)eir in ut costs )a#e :a en and T t)ey )a#e gained an e0 ort ad#antage To#er com etitors in ot)er arts o: T t)e $or dt)at )ea#i y re y on muc) T ricier oi -based na )t)a'"t t-e epicenter o) t-e s-ale boom J is 'exas4 a signi)icant player in t-e %8S8 J petroc-emical industry and -ometo J some o) t-e nation7s most productive s-ale areas8 '-e state is reaping J economic gains )rom t-epetroc-emical resurgence t-at include increases in J construction4 6obs and exports8

&age ((0 o) ( (

http://www.dallasfed.org/assets/documents/research/swe/2012/swe1204h.pdfhttp://www.dallasfed.org/assets/documents/research/swe/2012/swe1204h.pdfhttp://www.dallasfed.org/assets/documents/research/swe/2012/swe1204h.pdf


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Solvency – Hydrocarbons

'exas -as a 9ey opportunity to revitali;e t-e Mexican -ydrocarbons industryEadvantages o)t-e economic boom could cross t-e border!orc-ado4 Dallas Ne.s Mexico Bureau4 (F* :redo, 11 1 12, Da as ne$s, %;ooming oi and gas de#e o ment sto s at e0as-/e0ico border,)tt $$$'da asne$s'com ne$s state )ead ines 2812111=-booming-oi -and-gas-de#e o ment-sto s-at-te0as-me0ico-

border'ece , *ccessed 7 18 13, J>L

* ca a, e0ecuti#e administrati#e assistant :or t)e "io Grande De#e o ment >ounci , is ta ing about an oil and gasboom t-at -as ignited ne. energy in $)atCs no$n as t)e ag e ?ord ()a e, an area 488 mi es ong and 68 mi es$ide, stretc)ing :rom ast e0as to t-e 'exas3Mexico border region8;ut )eCs e ua y intrigued by $)at cou d be 6ust across t-e border in Mexico , $)ere )riends and re ati#es i#e andtoo o:ten struggle )inding 6obs8%Zou no$, t-e oil doesn7t stop at t-e border , )e said' % ,t 6ust goes on and on into Mexico 'But t-e boom in oil and gas development does stop at t-e border , :or t)e most art, a victim o) t-e insecuritygenerated by .arring drug cartels and by a Mexican energy sector t-at -as been stunted by bureaucracy and

lac9 o) innovation4 observers say8,t7s a di))erent story nort- o) t-e border8(ince 2818, t-e Sout- 'exas region -as created overnig-t boomto.ns4 a 0 billion economic .ind)all E andmore t-an / 4


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1

SolvencyE#nergy Security

'exas is an industry leaderE.ill pus- t-e %S to.ard energy independenceQorbes +A(CA(+FDa#id ; ac mon, % )e e0as ()a e ine ()a e'/any eo e sco::ed $)en :irst >itigrou and t)en t)e &( nergy In:ormation *dministration issued re orts ast year

roBecting t)at t)e &( cou d become com ete y inde endent o: im orts :rom outside o: Port) *merica by 2828'oday, :e$ in:ormed eo e sco:: at t)at ros ect'Last mont-4 t-e %S only imported +@O o) its oil consumption8 '-at7s do.n )rom 0


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SolvencyERelations'exas paves t-e .ay )or %S3Mexico relationsE6oint energy investment builds a long3termpartners-ip$on;ale;4 Latinos Ready 'o ote political director4 +A A(+F* e0, Matinos "eady to oteS, % e0as and /e0ico Peed o !artner :or Patura resources,)tt atinosreadyto#ote'com te0as-and-me0ico-need-to- artner-:or-natura -resources , *ccessed 7 18 13, J>L

/oreo#er, a simi ar re ort arguest)at "merica7s o$n strategy )or economic revival cannot be limited to t-e nation7s borders ' *nd its :uture :oreign o icyAits

roBection o: o$er and rinci eAmust be grounded in t)e emerging economic order' )e ne$ &'(' internationa economic strategy s)ou d )a#e s)ou dstrengt)en its continenta base by bui ding on t)e Port) *merican ?ree rade *greement $it) >anada and /e0ico'(o 'exas alone cannot supply t-e re2uired oil and natural gas to )uel t-e %S economy or t-e independence )romt-e Middle #ast8 Hence4 t-e need )or a partners-ip bet.een t-e t-ree nations o) Nort- "merican .it- 'exas

leading t-e .ay8'-e %nited States4 !anada4 and Mexico are are located in .ealt-y -ydrocarbon resources ;ones: oil4 naturalgas 4 and coa ' )e tota Port) *merican )ydrocarbon resource base is more t)an :our times greater t)an a t)e resources in t)e /idd e ast' *nd t)e &nited(tates a one is no$ t)e :astest-gro$ing roducer o: oi and natura gas in t)e $or d' ?urt)ermore, t)e recent gro$t) in )ydrocarbons roduction )as a readygenerated )undreds o: t)ousands o: Bobs and bi ions in oca ta0 recei ts by un oc ing bi ions o: barre s o: oi and natura gas in t)e )ydrocarbon-dense s)a es o:

Port) Da ota, anadaCs oi sands' *n a::irmati#e o icy to e0 and e0tractionand e0 ort ca abi ities :or a )ydrocarbons o#er t)e ne0t t$o decades cou d yie d as muc) as O7 tri ion o: #a ue to t)e Port) *merican economy, $it) O5 tri iono: t)at accruing to t)e &nited (tates,(imi ar recommendations on t)e need to $or $it) /e0ico and >anada )a#e been issued by t)e .eritage ?oundation on Patura resources' .eritage ?oundationargues t)at*ttem ting to contro t)e energy sector :rom Was)ington, t)e !resident s)ou d earn :rom )ydrau ic :racturing and trust ri#ate-sector in#estment and inno#ationand consumer c)oice to dri#e *merican energy o icy' *n energy o icy t)at a o$s t)e ri#ate sector to meet *mericaCs energy needs $i ro#ide *mericans $it)t)e most secure :ue c)oices at t)e o$est rices' )e energy mar et ace $i $or i: t)e !resident and t)e *dministration $i Bust a o$ it''exas .ill continue to lead on natural energy since &roduction :rom t)e ag e ?ord s)a e in e0as increased more t-an =<percent in December $)en compared to last year8 )e ag e ?ord ()a e is sti in its ear y stages, $it) andmen continuing to )unt :or minera rig)tsacross (out) e0as and no one rea y no$ing )o$ muc) oi is out t)ere' *nd Bust t$o $ee ago a re ort by e0as >ommission s)o$ t)at s)a e :ormations in Sout- and 1est 'exas appear a.as- again in oil and gas8)ere:ore 'exas oil companies in Houston no. are loo9ing into -o. to 9eep 'exas open )or exploration and t-e.or9 .it- Mexico to untapped t-eir oil reserves .it- more advance mac-inery to develop long3term

partners-ip8

&age ( < o) ( (

http://latinosreadytovote.com/texas-and-mexico-need-to-partner-for-natural-resources/http://latinosreadytovote.com/us-mexi-can-new-u-s-international-economic-strategy/http://latinosreadytovote.com/us-mexi-can-new-u-s-international-economic-strategy/http://latinosreadytovote.com/us-mexi-can-new-u-s-international-economic-strategy/http://latinosreadytovote.com/unleashing-the-north-american-energy-colossus-hydrocarbons-can-fuel-growth-and-prosperity-2/http://latinosreadytovote.com/unleashing-the-north-american-energy-colossus-hydrocarbons-can-fuel-growth-and-prosperity-2/http://latinosreadytovote.com/how-to-keep-promises-to-expand-energy-production-and-create-american-jobs/http://latinosreadytovote.com/how-to-keep-promises-to-expand-energy-production-and-create-american-jobs/http://latinosreadytovote.com/how-to-keep-promises-to-expand-energy-production-and-create-american-jobs/http://www.rrc.state.tx.us/barnettshale/index.phphttp://www.rrc.state.tx.us/barnettshale/index.phphttp://www.rrc.state.tx.us/barnettshale/index.phphttp://latinosreadytovote.com/texas-and-mexico-need-to-partner-for-natural-resources/http://latinosreadytovote.com/us-mexi-can-new-u-s-international-economic-strategy/http://latinosreadytovote.com/unleashing-the-north-american-energy-colossus-hydrocarbons-can-fuel-growth-and-prosperity-2/http://latinosreadytovote.com/how-to-keep-promises-to-expand-energy-production-and-create-american-jobs/http://www.rrc.state.tx.us/barnettshale/index.php


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"' – &erm&erm )ailsEcourt decisions maintain t-at t-e )ederal government doesn7t -ave aut-ority over9ey 'exas oil regions in t-e $ul) o) MexicoDaniel4 associate 6ustice o) t-e 'exas Supreme !ourt4 @F!rice, Democratic &'(' (enator , 3=t) Go#ernor o: e0as , member o: t)e Pationa (ecurity >ounci , Director o: t)ea i:ornia and ot)er coasta states'

)e contest $as not con:ined to e0as' * states became concerned o#er t)eir ong-recognized tit es to ands beneat)t)eir na#igab e $aters' It became a nationa issue, resu ting in t)ree (u reme >ourt decisions against t)e states, t)reeacts o: >ongress in :a#or o: t)e states, t$o residentia #etoes against t)e states, and a maBor issue in a residentiacam aign, be:ore t-e states )inally .on t-e victory ' It $as t)e most serious con: ict o: t)e century bet$een t)e statesand t)e :edera go#ernment' '-e )ederal claims .ere branded as an attempted WexpropriationW and WstealW byoutraged o))icials o) 'exas and many o: t)e ot)er states' In 1 4 a state$ide ub ic o inion o re orted t)at t)e

eo e o: e0as considered it to be t)e most im ortant ub ic issue :acing t)e state' !ub ic indignation ran )ig)er ine0as t)an e se$)ere because t)is and )ad been dedicated to and $as a source o: re#enue :or t)e ub ic sc)oo :undFsee * *IM*;M (>.

Mexico Hydrocarbons Negative Wave 2 - Gonzaga 2013

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