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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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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Don’t Mess With Saudis in Oil Bear Market Global Shakeout

October 16, 2014

10/16/14 Bloomberg

energy - oil barrelsLower oil prices may lead to less of a bonanza for Mexico as it ends a 76-year-old state oil monopoly and opens up to private investment, according to Marco Oviedo, chief economist in the Latin American country for Barclays Plc. The nation is set to hold its first round of auctions next year for oil production contracts that’s forecast to attract nearly $13 billion of investment a year through 2018, according to the Energy Ministry. It will also offer joint ventures with state-owned Petroleos Mexicanos. “Mexico is going to have a very, very important round-one bidding process in just a few months,” Marcelo Mereles, a former Pemex executive who’s now a partner at EnergeA, an energy consultant, said in a phone interview from Mexico City. “ The lowered oil prices could cause bidders to be less aggressive and or shy away from investing in Mexico immediately.”

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Oil companies eye Mexico’s ‘sweet shop’

September 29, 2014

09/26/14 Financial Times

energy - oil barrelsMexico is “like a sweet shop in the oil business”, according to one executive, and international energy companies are eyeing the goodies it offers as they wait for technical and fiscal details to work out how much they can splurge. Mexico is accelerating the bidding process in the reform of its energy sector. It expects to announce fiscal terms in November and to award the first contracts – for shallow water fields – in late April-early May. Deep-water fields will be awarded in September-October 2015.

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Mexican cartels steal billions from oil industry

September 25, 2014

09/25/14 The Washington Post

Oil barrelsMexico overcame 75 years of nationalist pride to reform its flagging, state-owned oil industry. But as it prepares to develop rich shale fields along the Gulf Coast, and attract foreign investors, another challenge awaits: taming the brutal drug cartels that rule the region and are stealing billions of dollars’ worth of oil from pipelines. Figures released by Petroleos Mexicanos last week show the gangs are becoming more prolific and sophisticated. So far this year, thieves across Mexico have drilled 2,481 illegal taps into state-owned pipelines, up more than one-third from the same period of 2013. Pemex estimates it’s lost some 7.5 million barrels worth $1.15 billion.

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Pemex boss: looking to the US and to Asia

September 17, 2014

09/15/14 Financial Times

Oil barrelsEver pragmatic, the boss of Pemex, Mexico’s revamping state oil company, knows the first barrels of oil extracted from the enticing deepwater prospects in the Gulf of Mexico under the country’s historic energy reform will probably be processed and shipped through existing US infrastructure. But don’t be tempted to think that Pemex is taking its eye off Asia.

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Mexico’s Interest in U.S. Oil Seen Opening Export Door

September 16, 2014

09/16/14 Bloomberg

energy - oil barrelsU.S. oil producers anxious to export booming supplies of domestic crude may have another way around a ban in place since 1975, this one via Mexico. Mexico’s state oil company, Petroleos Mexicanos, or Pemex, has expressed interest in importing some of the lighter oil the U.S. has in abundance, swapping it for heavier Mexican oil that U.S. refineries are able to process. If approved by the U.S. Commerce Department, it would be another exemption permitted by President Barack Obama’s administration, which this year let two oil producers sell a lightly processed form of crude overseas.

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