In 1938, Mexico banned the foreign investment of their oil and gas industry. They nationalized it, leading to a company called Pemex controlling all of their operations. However, that plan to bring more profits home to the people of Mexico has failed. Too many economic problems have plagued Mexico for too long to keep it up. Now, after about 80 years of cutting off outsiders, they’ll let them back in once again.
That led to an interesting round table and bidding debate in 2015. Various foreign corporations were allowed to court the Mexican government to earn the right to drill and operate an oil rig off the Sureste Basin in the waters of the Tabasco state’s coastline. With millions on the line, three companies came out on top: Premier Oil, Talos Energy, and Sierra Oil and Gas.
The industry experts and analysts predict that the well will bring large amounts of profit to the three giants, who plan to split the profits almost evenly among them. Talos will take the helms, being responsible for the daily operation of the oil well. With over 100 and up to 500 million barrels of crude oil, that’s a lot of responsibility to handle. But Talos is used to it.
Talos Energy was born out of the innovation off business owners and investors. After being backed by a hedge fund giant, they had hundreds of millions to hire workers and go shopping. They did just that. They went from under 20 to 120 employees in a few short years, since opening their doors in 2012. Since then, they have acquired another company for $620 million and grown revenue to $500 million per year.
Management at Talos knows that their secret to success is not just the perks that come with working at the Houston based powerhouse. The engine behind their ability to exploit resources and drive innovative solutions to pump 16,000 barrels of oil a day is their profits. Employees are getting a piece of the pie by sharing in them, meaning they work harder and create more leverage for investors. It’s one of the reasons Talos is at the top.