[video] Dicker: Overhaul Means Opportunity for U.S. Oil Firms

NEW YORK (TheStreet) -- I was talking today with Joe Deaux about legislation making its way through the Mexican Senate looking to end Pemex's monopoly of oil production in Mexico. If approved, it will allow foreign investment in Mexican oil and gas assets for the first time in more than 50 years.

The legislation has a long way to go and the public distrust of foreign oil companies is deep, but the legislation makes a lot of economic sense for Mexico -- the government is funded by almost 30% by the receipts from the oil and gas business run by Pemex and production has dropped for eight straight years despite a very robust global market for crude oil and natural gas.

That has helped increase the price for gasoline, heating oil and natural gas more than 30% in Mexico compared with its neighbor to the north, the United States -- and this is despite the fact that Mexico is one of the most abundant in potential fossil fuel supplies.

While the opportunity for production is clear in the Gulf of Mexico, where deep-water opportunities are relatively untouched, there is also a huge opportunity in shale natural gas reserves estimated at 480 trillion cubic feet.

I talk more about the likelihood and results of this bill with Joe in the video above.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.