Gov. Chris Christie of New Jersey offered a prescription for what he called a “North American energy renaissance” in an expansive speech here, calling for an end to Washington’s 40-year ban on crude oil exports, faster approval of natural gas pipelines between the United States and Mexico, and construction of the Keystone XL pipeline from Canada to the Gulf Coast. On the opening day of Mr. Christie’s trip to Mexico, a rare journey abroad as he considers a run for the presidency, he abandoned his trademark swagger for a data-filled, policy-rich and humility-heavy approach.
08/06/14 Dallas Morning News
The Mexican Senate voted 90-27 to pass the so-called secondary rules outlining the framework under which foreign companies will drill for oil and natural gas in Mexico. A cornerstone of President Enrique Peña Nieto’s ambitious economic overhaul, the law is expected to open the door to what some believe could be more than $1 trillion in investment and create a new energy paradigm for North America.
The first big set of contracts for oil and gas development in Mexico are likely to be delayed a few months, an energy ministry official said on Tuesday, after disagreements in Congress over detailed legislation to underpin them.
Congress is currently discussing so-called secondary laws, including some new rules and amendments to existing ones, needed to set in motion a landmark energy reform passed in December to open up the oil and gas industry to private capital.
06/07/14 The Brownsville Herald
Anyone who pays the slightest attention to the oil and gas industry knows that Texas is in the middle of a major energy boom, one concentrated largely on the vast Eagle Ford Shale formation that spans several counties in South Texas.
The same formation happens to extend south across the border into Mexico, where it’s known as the Burgos Basin. While Eagle Ford already has thousands of exploration sites in operation, virtually nothing is happening south of the border — nothing yet, at least. The Mexican government late last year instituted sweeping reforms on several fronts, including energy. The result is that, for the first time, companies other than PEMEX will be able to invest in energy exploration and production in Mexico.
Financial Post, 06/03/14
A high-level delegation from Mexico was in Calgary Monday to invite Canadian companies to take advantage of its sweeping energy reforms.
Endowed with massive oil and gas resources, the two countries have made their development central to their economies, while taking the view that growth and environmental protection can move hand-in-hand, not at each other’s expense.
In the next two weeks, Mexico’s lawmakers are expected to release a series of laws, known as the secondary laws, that should begin to delineate how the revolutionary energy reforms approved last December will be implemented.
Prior to the reforms, Mexico had the most closed energy regime of any country in the world, save North Korea, some have quipped. This Latin perestroika is not going unnoticed in the US and abroad. It has become de rigeur at nearly every oil and gas conference to have at least one panel to discuss the changes, and with good reason.
Not only is Mexico close, the opportunity is huge. The country is prospective for 54.6 billion barrels of oil equivalent in conventional resources, and 60.2 billion in unconventional, according to PEMEX figures. And don’t forget NAFTA. Although Mexico’s energy industry had been excluded under Chapter 6 of NAFTA, that exclusion may no longer apply given the reforms, said Dallas Parker, a partner with Mayer Brown, during a presentation at Mergermarket’s 6th Annual Energy Forum last week in Houston.
Infraestructura Energetica Nova (IENOVA*) SAB, the Mexican unit of Sempra Energy (SRE), is being forecast by analysts as a winner because of energy legislation that helps it extend last year’s growth and a 53 percent stock gain.
Ienova is expected to be an “early beneficiary” of the energy law enacted by Mexico’s President Enrique Pena Nieto last month that will allow foreign companies to produce crude in Mexico for the first time since 1938, Credit Suisse analysts led by Vanessa Quiroga said in a Dec. 16 note to clients. Opportunities to enter oil and natural gas transportation and storage as well as electricity transmission and distribution will probably keep driving Ienova shares, according to Curt Launer, an analyst at Deutsche Bank AG. He rates the shares a buy with a target price of 67 pesos.
The second part of Mexico’s energy law will be debated in congress next month. Secondary legislation will determine legal specifics for contracts of foreign oil companies entering Mexico such as Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX)
“Energy reform brings in new capital and new drilling and makes Mexico able to grow its own natural gas production,” Launer said in a Jan. 21 phone interview from New York. “Ienova is very well positioned to be the natural gas processor, to be the liquids processor, and the joint venture they already have with Pemex looks like it would be a big winner in any of those circumstances.”