Talos Energy discovering nearly 2 billion gallons of oil in the Gulf of Mexico

Talos Energy just made an exciting find. The Zama-1 well, commonly referred to as Zama, was believed to have up to 2 billion gallons of oil. Talos Energy recently started drilling about 37 miles off the southern coast of the gulf of mexico in Puerto Dos Bocas. This find is exciting first because up until recently, Mexico did not allow outside companies to drill in their water and secondly because this find is one of the twenty largest finds in shallow water in recent history.

Talos Energy is a Houston Texas based offshore oil company. The president and chief executive of Talos Energy said that it could take up to four years to develope this oil find. While this is a large oil find, deciding on how to develope it cannot be made hastily. Many analysts feel as though this find could open up to more drilling south of the United States border. Within the past three years Mexico began reforming their off shore oil drilling practices and opening them up to out of country drillers. This find could encourage Mexico to perform more off shore drilling and oil fields. Prior to 2014, before the deregulation began, Mexico only had one oil production company, Petróleos Mexicanos. They decided to help improve the country’s insufficient energy revenues by allowing other companies to drill in their waters.

The offshore drilling find made by Talos Energy caused their shares to rise to nearly 30pc when it announced the discovery of the Zama oil well. This discovery was made by Talos Energy and Mexican firm Sierra Oil and Gas. This find could produce worldwide positive ramifications.