October 30, 2014
Petroleos Mexicanos signaled a return to profitability by the end of next year as the opening up of Mexico’s oil industry to private capital lifts the state-owned company’s production and reduces its tax burden. A 21 percent slump in the price of crude this year won’t damp Pemex’s plans to bring in partners for 10 of its existing blocks and bid for new areas on offer next year, Chief Executive Officer Emilio Lozoya said in an interview today. Facing eight straight quarters of losses, deteriorating output and a lack of resources to develop new finds, the former World Economic Forum executive is in talks with major producers as Mexico accelerates the industry overhaul that also includes lowering tax rates for Pemex. Speaking on Bloomberg Television’s “The Pulse,” he said crude will recover as demand picks up and deposits become harder to find and develop.
October 29, 2014
10/28/14 New York Times
The computer screens lining the bubble like control room on this giant floating platform monitor pressure levels in a narrow shaft cut through bedrock to a reservoir of valuable natural gas three miles below sea level. For six months, an international team hired by a contractor for Petróleos Mexicanos, Mexico’s state-owned oil monopoly, has been drilling an exploratory well here. Now, the work is nearly done. Drill pipes are stacked like sentries. An underwater robot has been pulled back up from the deep seafloor. A wireline sensor is gathering data to determine how much oil and gas lie below. An operation like this would attract little attention in the northern part of the gulf, where dozens of deepwater platforms are part of the mosaic fueling America’s energy boom. On the Mexican side, though, the search is just beginning.
October 27, 2014
Accelerating non-OPEC production growth outside North America, including from Brazil, Mexico and Azerbaijan, will outpace demand growth, leaving the oil market oversupplied, according to the report. The increased output is forcing producers to reduce prices to lure buyers. State-owned Saudi Arabian Oil Co. on Oct. 1 cut prices for all grades and to all regions for November. The Asian price of Arab Light was cut by $1 a barrel to a discount of $1.05 to the average of Oman and Dubai crudes, the benchmark published by Platts, the energy-information division of McGraw-Hill Cos. That’s the lowest since December 2008.
October 22, 2014
Coal exports from the U.S. West Coast rose to the highest in more than a decade amid demand from Mexico and Asia, providing a market for the power-plant fuel amid lower domestic consumption. Shipments from the western U.S. are up 35 percent to about 5 million tons through the first six months of this year, led by an almost six-fold jump in cargoes leaving San Francisco, according to the Energy Information Administration. That comes even as nationwide exports have fallen 15 percent.
October 21, 2014
10/20/14 Oil & Gas Journal
Mexico plans to publish its technical bidding requirements in November, outlining logistics for the first upstream bid round, according to hydrocarbon officials visiting Houston to update the oil and gas industry on the country’s progress in opening up its assets to non-Mexican companies. On Dec. 21, 2013, Mexico’s sweeping energy reform became law, triggering a revamping of that country’s oil, gas, and electric industries. During Round One, Mexico will offer licenses and production-sharing contracts, ending a decades-old monopoly held by Petroleos Mexicanos (Pemex). Maria de Lourdes Melgar Palacios, Mexico’s undersecretary of hydrocarbons, said the country plans to open its areas in a bidding sequence starting with the shallow water. After that, bidding will involve extra-heavy oil, unconventional assets, and deep water.
October 21, 2014
10/20/14 Wall Street Journal
Mexican conglomerate Alfa SAB said Monday it plans to issue new stock to raise capital as it seeks to take advantage of opportunities opened up for the private sector under Mexico’s new energy laws. Alfa, based in Monterrey, said in a news release that the proposal will be submitted to a shareholder vote on Nov. 4. “We intend to capitalize on opportunities created by Mexico’s energy reform and leverage our experience in shale gas, conventional exploration and production, and power generation and commercialization,” Alfa said.
October 20, 2014
10/20/14 Wall Street Journal
Mexico’s exports of iron ore have plunged following a crackdown this year by authorities on China-bound shipments linked to drug cartels, Mexican officials said, underscoring the outsize role China plays in the global market for the steelmaking material. Mexico will likely export just 2 million metric tons of iron ore this year, said Mario Cantú, Mexico’s coordinator general of minerals, on the sidelines of an industry conference in the northeastern Chinese city of Tianjin. Last year’s exports totaled 10 million tons, 9 million of which were bound for China.