Pemex and Petrobras Bet Big on High-Risk High-Reward Drilling Off Mexico

Mexico’s state oil firm Pemex and Brazil’s national oil company Petrobras are joining efforts and expertise to drill prospects in Mexican waters in the Gulf of Mexico, hoping to unlock huge oil resources from source rock formations that are miles deeper and eight times older than the currently producing formations in the U.S. Gulf. Exploration in the Jurassic formations deep under the Mexican Gulf seabed in the Campeche Bay carries high risks, but the reward in case of a discovery could be enormous, geologists and analysts tell Bloomberg.…