September 22, 2014
HOUSTON, Sept. 22, 2014 /PRNewswire/ -- BBVA Compass' Chief Economist Nathaniel Karp testified at a Texas Senate subcommittee Friday about Mexico's historic energy reforms, which he said will add more than 200,000 jobs, almost $3.5 billion in state revenues and $45 billion in GDP to the Texas economy.
Karp was invited to speak before the natural resources subcommittee by Texas Sen. Juan Hinojosa of McAllen, the committee's chairman. He spoke about research his team at BBVA Compass conducted on the economic impact that Mexico's groundbreaking legislation, which was passed in December and allows private firms to invest in the country's energy sector, will have on Texas.
"Texas stands to be the major beneficiary from the reform due to deep economic ties, geographic proximity and expertise in energy exploration, production and distribution," Karp told the subcommittee. Mexico "will need Texas' firms to provide physical resources, cutting-edge technologies, human capital and expertise" – particularly in deepwater and horizontal drilling and extra heavy oil.
He anticipates a large share of the foreign direct investment to Mexico will be used to purchase goods and services from Texas, benefiting a wide range of the state's industries. In addition, he predicted that Mexico's faster economic growth created by the reforms will further boost trade with Texas and business opportunities throughout the state.
He pointed out that of the five promising basins in Mexico, the two largest are on or near the Texas border. The Burgos Basin in northeast Mexico is estimated to hold two-thirds of Mexico's shale gas resources. It's an extension of Texas' Eagle Ford Shale, and would have significant appeal for companies that operate on the Texas side of the border. Karp said this will help narrow the socioeconomic disparities between Texas' border cities and big metro areas, like Houston and Dallas.
"If these border towns effectively seize the opportunity, the Texas-Mexico border could see one of the most dramatic transformations in its history," Karp said.
Watch the full video of Karp's appearance here. His testimony starts at 2:13:05.
Led by Karp, BBVA Compass research team analyzes the U.S. economy, banking and monetary policy. The economists build models and provide forecasts for growth, inflation, monetary policy, financial markets and industries. The economic research team also follows a variety of issues that affect the Sunbelt states where BBVA Compass operates.
In addition to Karp, the bank's economic research group includes Kim Fraser Chase, Marcial Nava, Shushanik Papanyan and Boyd Nash-Stacey. Follow their work on Twitter @BBVAResearchUSA and @BBVACompassNews.
About BBVA Group
BBVA Compass is a subsidiary of BBVA Compass Bancshares Inc., a wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a customer-centric global financial services group founded in 1857. The Group has a solid position in Spain, is the largest financial institution in Mexico and has leading franchises in South America and the Sunbelt region of the United States. Its diversified business is geared toward high-growth markets and relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. The Group is present in the main sustainability indexes. More information about the BBVA Group can be found at www.bbva.com.
About BBVA Compass
BBVA Compass is a Sunbelt-based financial institution that operates 673 branches, including 342 in Texas, 89 in Alabama, 77 in Arizona, 62 in California, 45 in Florida, 38 in Colorado and 20 in New Mexico. BBVA Compass ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (5th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration and recently earned the top ranking with customers in American Banker's 2014 annual reputation survey of the top 25 largest U.S. retail banks. Additional information about BBVA Compass can be found at www.bbvacompass.com, by following @BBVACompassNews on Twitter or visiting newsroom.bbvacompass.com.
BBVA Compass is a trade name of Compass Bank, member FDIC.
SOURCE BBVA Compass
For further information: Jena Moreno, Corporate Communications, Tel. 713.831.5867, email@example.com, Follow @BBVACompassNews on Twitter