November 26, 2014
Delegations from Russia, Saudi Arabia, Mexico and Venezuela have met for the first time in such a format for talks in Vienna to discuss rapidly dropping oil prices. The group agreed to monitor prices for a year. The energy ministers have not agreed upon cutting oil production, as such agreements can only be reached during OPEC meetings, the Venezuelan Foreign Minister Rafael Ramirez said following the talks held at the Park Hyatt in Vienna on Tuesday. He added that the group also believes the current oil prices are too low, and named a fair price at $100 per barrel.
November 25, 2014
November 25, 2014 Wilson Center Now
Mexico is attempting to turn one of the world’s most closed energy programs into one of its most open. Is transformational change possible? And if success is achieved, what are the implications for Mexico, its neighbors, and the world? Duncan Wood is an expert on energy issues and also serves as Director of the Wilson Center’s Mexico Institute. He provides insight and analysis during this edition of Wilson Center NOW.
November 17, 2014
The elder statesman of Mexico’s main leftist party said on Sunday the group was on the verge of falling apart after a series of mistakes and the disappearance of 43 students in a state it runs in the southwest of the country.Three-times presidential candidate Cuauhtemoc Cardenas said the opposition Party of the Democratic Revolution (PRD), which finished runner-up in Mexico’s last two presidential elections, had lost its moral authority and needed urgent reform.In an open letter published by his office, Cardenas, 80, said the PRD was “on the verge of dissolving, or ending up as a simple political-electoral franchise subordinate to interests alien to those of the broad base of its members.”Cardenas, the son of former president Lazaro Cardenas, a leftist icon who nationalized Mexico’s oil industry in 1938, called on the party leadership to step down to allow a process of reconstruction to begin.
November 13, 2014
Saudi Arabia’s oil minister dismissed talk of a price war as having “no basis in reality” in his first public comments since crude plunged into a bear market last month. “Saudi oil policy has remained constant for the past few decades and it has not changed today,” Ali al-Naimi said at a conference in Acapulco, Mexico, yesterday. “We want stable oil markets and steady prices, because this is good for producers, consumers and investors.” Brent crude futures plunged below $80 yesterday for the first time since September 2010 on concern OPEC is in no hurry to halt a four-month slide in prices. Saudi discounts offered to Asian customers in October triggered speculation that the Organization of Petroleum Exporting Countries’ largest member had changed policy and was seeking to preserve market share, instead of supporting prices by curbing supply. OPEC ministers will meet Nov. 27 in Vienna.
November 12, 2014
11/12/14 Financial Times
Halliburton, the US oilfield services group, reported a tough year in Latin America in its latest quarterly earnings call. Profit margins and activity levels were weaker than expected, largely as a result of operational issues in Mexico. But it is not all looking so downbeat. “We’re . . . excited about the pace of Mexico energy reform and expect to see strong opportunities in shale, mature fields, and deepwater markets in the coming years,” says Dave Lesar, chief executive.
November 4, 2014
Empresas ICA SAB (ICA*)’s contract to supply engineering services for Royal Dutch Shell Plc (RDSA) in Canada is signaling to investors that the Mexican construction company is seeking energy projects abroad to cut debt and boost profit. Mexico’s largest construction company surged 4.6 percent in the past two sessions, the biggest back-to-back increase in more than five months, after announcing a $264 million contract with partner Fluor Corp. to build well pads for heavy-oil extraction at Shell’s Carmon Creek project in Alberta. The worst performer among Mexico’s industrial and construction stocks this year, ICA has tumbled about 10 percent, while global peers gained about 19 percent.
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.