This segment is from Thursday'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.
Reforming Pemex, Mexico's state-run oil and gas company, is a top priority for President Enrique Pena Nieto, and a recent well fire that foreign firms are being brought in to contain is one more reason the 75-year-old monopoly needs to be overhauled. This is great news for big United States oil companies such as ExxonMobil (NYSE:XOM) and service firm Halliburton (NYSE:HAL), as the increased flow of money and technology could triple the amount of proven reserves in Mexico. Investors in offshore drillers will also want to keep their eye on Pemex, as an influx in foreign involvement will directly benefit them.