Pemex Sees Return to Profit With Crude Set to Recover

October 30, 2014

10/29/14 Bloomberg

Pemex LogoPetroleos 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.

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Mexico’s State-Owned Oil Giant, Pemex, Is in Uncharted Waters

October 29, 2014

10/28/14 New York Times

Oil Rig 2 by Flickr user tsuda Photo by Flickr user tsudaThe 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.

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Goldman Cuts Oil Forecasts as U.S. Market Clout Increases

October 27, 2014

10/27/14 Bloomberg

energy - oil barrelsAccelerating 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.

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U.S. West Coast Coal Exports Rise as Mexico to China Buy

October 22, 2014

10/21/14 Bloomberg

energy- oil pumps 2Coal 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.

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Mexico upstream bidding to start with shallow-water assets

October 21, 2014

10/20/14 Oil & Gas Journal

natural gas drillMexico 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.

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Mexico’s Alfa Plans Capital Increase to Finance Energy Projects

October 21, 2014

10/20/14 Wall Street Journal 

Energy -electricity_transmission_linesMexican 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.

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Mexico’s Antidrug Push Weighs on Iron-Ore Trade With China

October 20, 2014

10/20/14 Wall Street Journal

Carillo is the second mayor from Michoacan to be killed this year

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.

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