Steven Otillar Quoted by Houston Chronicle on Mexican Oil Industry and Falling Prices
Steven Otillar, a partner in Akin Gump’s oil and pas practice, was quoted by the Houston Chronicle in an article about Mexico’s efforts to obtain improved results in its next oil auction. Mexico opened up its oil and gas markets to outside investors earlier this year.
“Mexico hammers out new rules in hopes of better oil auction results” reports that a government-run auction in July failed when only a few producers showed interest. A second auction later this month will see new bidding requirements and fiscal terms, but it remains to be seen if that will be enough to raise investor interest amid slumping oil prices.
Otillar thinks the low prices, and how companies confront them, could lead to a healthier oil industry in the long-term, saying, “I think that crashing oil prices have been good for the Mexican industry. You’re seeing improved contractual terms. You’re seeing interest from companies who don’t want to just pump oil and get out.”