In a recent Bloomberg Business Week article, writer Joe Carroll’s highlights the gritty, tough landscape of South Texas border country where security issues – very similar to those unfolding in the Eagle Ford Shale Play – continue to evolve. It is something we are talking about a lot at Butchko as well. We see the risk from the perspective of oil & gas companies, along with the ranchers whose land the pipelines traverse. With every new well drilled and every extra mile of pipeline built, the organized criminal gangs and Mexican cartels are being given another place to hide and a better pathway north. This is significantly increasing both the risk of confrontation and the reputational risk to companies operating in the region.
The recent increase in illegal immigration has added another wrinkle. Border patrol agents are spending a preponderance of their time processing the huge number of unaccompanied children who are flooding the border. This leaves key segments of the border as a whole relatively unprotected, increasingly putting ranchers and the oil companies’ facilities and personnel in a dangerous position.
Butchko, Inc. will be releasing an analysis of the confluence of the Eagle Ford Shale fracking boom, increased illegal immigration, and increased cartel activity, with specific reference to its impact on oil & gas companies operating in the region. To read our past updates on this topic, please visit our website document library.