Union Pacific May Benefit From Mexico Energy Reform

August 26, 2014

08/26/14 By Trevis Team. Forbes

energy- oil pumps 2Union Pacific generates around 10% of its revenue from shipments to and from Mexico. We believe that with the new energy sector reform in Mexico, this number could go up driven by an increase in Union Pacific Mexico shipments of industrial products and chemicals carloads. Recently, the Mexican government passed a law that opens up Mexico’s energy sector to foreign and private domestic energy companies. Since 1938, state-owned Petróleos Mexicanos, or Pemex, has been the only company operating in Mexico that produces and refines oil. The new law is expected to bring in billions of dollars in new investment, increase competition, and increase production of oil and gas that will help lower electricity costs in Mexico.

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Mexico poised for an ‘energy renaissance’ following reforms

August 26, 2014

08/25/14 Fortune

energy -drilling_platform_in_seaOpening the country’s oil to foreign investors will accelerate foreign investment and generally ‘improve the lives of its people,’ says think tank.

Mexico’s energy reform will bring the country “enormous benefits” and will be a “game changer” for the nation’s role in the global economy, according to report released Monday.

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Mexico’s Pemex Lowers Expected Oil Output for 2014

August 25, 2014

08/22/14 The Wall Street Journal

oil rigsMexico’s state-owned oil company Petróleos Mexicanos said Friday that crude-oil output this year would fall to about 2.35 million barrels a day after accounting for water and other impurities coming out of its fields in increasing quantities.

Pemex, as the company is known, said crude-oil measured at the wellhead in the January-to-July period averaged about 2.47 million barrels per day, while the amount of oil obtained after removing water, segregating products and accounting for inventories was 2.34 million barrels a day.

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Mexico’s Pemex Adjusts Structure to Compete With Private Companies

August 21, 2014

08/20/14 The Wall Street Journal

pemex21State-owned oil company Petróleos Mexicanos said Wednesday that it is creating drilling, logistics and electricity affiliates as it restructures its operations to compete with private oil firms.

Pemex, as the company is known, said in a news release that the affiliates would provide services to “new actors in the industry,” and that it would produce electricity through cogeneration—the use of heat from industrial operations to create power—and sell it on the open market.

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Will Security Problems Hamper Mexico’s Energy Boom?

August 18, 2014

08/18/14 By Nathaniel Parish Flannery. Forbes 

Energy -electricity_transmission_linesMexico has attracted attention for passing secondary laws that will end its state oil monopoly and open the country’s borders to new types of foreign investment. As Juan Montes explained in a recent article, “Under the new law, foreign and private domestic energy companies will be able to explore, produce and refine oil for the first time since Mexico nationalized its oil industry in 1938 and transformed oil into a symbol of national pride. State-owned oil giant Petróleos Mexicanos, or Pemex, was created that year, and has since been the only company allowed to exploit the country’s oil and gas resources, turning Mexico into the world’s ninth-largest oil producer.”

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Mexico’s Energy Sector Reform Worth The 76-Year Wait

August 18, 2014

08/15/14 By Gaurav Sharma. Forbes

energy- oil pumps 2Over the last decade, oil and gas supply-side analysts have noted the decline in Mexico’s hydrocarbon output with a fair degree of dismay. Ageing infrastructure, layers of red tape and alleged corruption have seen the country’s output drop from 3.6 million barrels per day (bpd) in 2004 to the current output level of just 2.5 million bpd.

Mexican market analysts’ standard response to the decline was a shrug of the shoulders accompanied by an all too familiar quip, “what do you expect – that’s Mexico.” The capacity to change things by bringing in private sector participation in general, and foreign direct investment in particular, was hamstrung by the concept of state ownership of natural resources enshrined in Mexico’s constitution since 1938.

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UT, A&M have energy expertise Mexico could tap

August 18, 2014

08/11/14 Houston Chronicle

energy -drilling_platform_in_seaAs Mexico ends its 75-year-old state monopoly and opens oil and gas production to foreign investment, the nation’s need for expertise – especially for petroleum engineers – will be great.

That’s prompted at least two Texas universities to establish relationships with universities in Mexico to train professionals and share knowledge.

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