Mexico’s president criticizes Shell-Pemex joint venture in Texas refinery

05/06/2021

Source: Yahoo! News

MEXICO CITY, May 6 (Reuters) – Mexico’s president on Thursday criticized the partnership between state oil company Pemex and Royal Dutch Shell in a Texas refinery, saying it has not yielded any benefits for Mexico.

President Andres Manuel Lopez Obrador, an energy nationalist who has sought to revive the fortunes of the deeply-indebted Pemex, said that no profits have been repatriated to Pemex since the partnership with Shell was established in 1993 as they have all been re-invested.

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Widespread Drought in Mexico

05/05/2021

Source: NASA Earth Observatory

Mexico is experiencing one its most widespread and intense droughts in decades. Nearly 85 percent of the country is facing drought conditions as of April 15, 2021. Large reservoirs across the country are standing at exceptionally low levels, straining water resources for drinking, farming, and irrigation. The mayor of Mexico City called it the worst drought in 30 years for the city, which is home to about 9 million people.

The images above, acquired by the Operational Land Imager (OLI) on Landsat 8, show one of the major water supplies to Mexico City, the Villa Victoria reservoir. The right image shows the reservoir on March 30, 2021, the best recent cloud-free Landsat overpass. The left image shows more typical levels on March 27, 2020. More recent imagery, although cloudier, shows water levels have continued to decline. Villa Victoria is filled to about one third of its normal capacity.

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Mexico Congress Passes Controversial Pro-Pemex Bill

04/22/2021

Source: Oilprice.com

The lower house of the Mexican parliament has passed a controversial bill that will give state-owned oil major Pemex more sway over the Mexican fuel market.

Bloomberg reports that the house voted 301 in favor and 147 against the proposal, which will remove a stipulation from an earlier law that requires the state energy market regulator CRE to prioritize fuel sales from private companies as a way of leveling their playing field with Pemex. According to the backers of the change, the field is level enough for the state-help provision to be removed. The bill now needs to pass through the Senate.

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Mexico Moves Closer to Fuel Controls With AMLO’s Bill Approval

04/14/2021

Source: Bloomberg

Mexican President Andres Manuel Lopez Obrador’s controversial proposal to tighten control over the country’s fuel market has cleared the lower house of congress, another step in his long-sought goal of resuming the state’s energy monopoly.

With 292 lawmakers in favor, 153 opposed, and 11 abstaining, the chamber approved in general terms the president’s proposal to give national oil company Petroleos Mexicanos greater control over the recently liberalized fuel market that lured investments from Royal Dutch Shell PlcBP PlcChevron Corp. and Exxon Mobil Corp. After debate on certain articles, the bill will be taken up by the senate, where the ruling Morena party and its allies have a majority.

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For Mexico’s president, the future isn’t renewable energy — it’s coal

04/12/2021

Source: The Los Angeles Times

SABINAS, Mexico — Juan Manuel Briones was 14 when he started working in the coal mines in this remote stretch of northern Mexico.
He toiled underground for nearly two decades, only to be laid off a few years ago as Mexico began embracing renewable energy and weaning itself off fossil fuels.

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Mexico Minister Accuses Fuel Retailers of Pocketing Subsidies

04/06/2021

Source: Bloomberg

Mexico is proposing changes to the country’s fuel laws and will review permits issued to retailers because some gas station operators aren’t passing on subsidies to consumers after a spike in international oil prices.

“There’s a fiscal stimulus maintained by the Finance Ministry at this time, and there are some gasoline retailers that absorb the stimulus, increasing their profit margins considerably,” said Energy Minister Rocio Nahle in a written response to questions from Bloomberg. “We are going to review their permits and act accordingly,” she said.

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Mexico’s New Electricity Law Reverts to ‘Dirtier’ Energy

03/30/2021

Source: Brink

As the world moves away from fossil fuels and toward renewable energy sources, the government of Mexico’s President Andrés Manuel López Obrador (AMLO) is taking a different path.

Driven by the romanticism of Mexico’s nationalization of the oil industry in the 1950’s and what he calls the need for Mexico to be energy self-sufficient, AMLO has made it his mission to unravel former President Enrique Peña Nieto’s 2013 historic energy reform. The reform liberalized the country’s energy sector to attract greater foreign investment and spur projects focused on renewable energy sources.

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Mexican President Uses Energy Nationalism Card Ahead of Key Vote

03/27/2021

Source: Bloomberg

Andres Manuel Lopez Obrador is doubling down on a promise that helped launch him to Mexico’s highest office in a landslide victory.

The Mexican president is trying to scrap a policy that opened the nation’s energy sector, and he’s made it the center of his strategy to keep control of congress in midterm elections just two months away.

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Mexico’s AMLO Pounces on Texas Freeze to Push Nationalist Agenda

03/25/2021

Source: Bloomberg

The deep freeze across the central U.S. last month didn’t just darken 4 million homes in Texas. It also left millions of people across the border in Mexico in the dark for days, disrupted water supplies, forced schools and businesses to shut, and knocked out service to about 800 manufacturing facilities that depend on U.S. shale gas for energy.

Since then, President Andres Manuel Lopez Obrador has turned the crisis into a rallying cry for more energy independence, weaponizing it to advance a nationalist agenda that has implications beyond natural gas imports and threatens tens of billions of dollars of investments in renewable energy by U.S., Canadian and European energy companies. On a large screen behind his press-briefing podium, he called up the image of a recent Wall Street Journal article showing how the power-market deregulation in Texas cost utility customers billions of dollars.

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Mexico Set to Reshape Power Sector to Favor the State

03/07/2021

Source: The New York Times

MEXICO CITY — President Andrés Manuel López Obrador has never been short of criticisms about his predecessor’s legacy. But he has reserved a special contempt for the sweeping overhaul that opened Mexico’s tightly held energy industry to the private sector.

He has called the changes a form of legalized “pillaging,” the product of corruption and a resounding failure. He has suggested that some foreign energy investors are “looting” the nation and that Mexican lawyers who work for them are guilty of treason.

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