Sizing geographic of the shale gas supply chain: A case of Mexico

Abstract

With enactment of energy reform in Mexico, some activities from energy sector are opened to national and foreign private investment. It is expected that new panorama generates important changes for this sector and thus produce significant positive effects on the economy, especially if national companies associated with its supply chain to insert in the new productive dynamic. To determine its context, this research made possible to typify and quantify Mexican companies engaged in economic activities associated with core business of shale gas, in order to measure the national potential in each link from the supply chain. In addition, this research helps to identify geographically some of main strengths and opportunities that each Mexican State has for insert in this new energy scenario through participation of its local micro and small businesses. This geographical vision contributes to better decisionmaking around this sector and favours generation of strategies as well as establishment of state and national public policies aimed at promoting the development of this sector through participation of the domestic companies. The results show that in Mexico there are mainly micro and small companies dedicated to the production of goods and services for this sector, supported by conventional resources, with a low possibility of effective integration in the competitive supply chain in cost and quality in relation to international companies with experience in such activities.