Mexican Election Could End the Welcome for U.S. Oil Giants

04/26/2018 The New York Times

energy- oil pumps 2As President Trump moves to recast trade and border relations with Mexico, American oil companies are worried that the prospective winner of Mexico’s presidential election will play his own nationalist card.

The leading candidate, Andrés Manuel López Obrador, wants to reverse policies that have tied a knot between Mexico and the United States in recent years in energy production and consumption. And he has promised to make sure that oil never falls “back into the hands of foreigners.”

In addition to threatening refinery profits in the United States, his proposals could slow down oil production in Texas and impede deepwater drilling in the Gulf of Mexico by international oil giants like Exxon Mobil and Chevron. They would also jeopardize the United States energy trade surplus with Mexico, which reached roughly $15 billion last year.

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Mexico presidency front-runner to investors: ‘Don’t be frightened’

04/04/2018 Reuters

amloMexican presidential front-runner Andres Manuel Lopez Obrador on Wednesday sent an open letter to investors, seeking to allay concerns he could damage the economy, and promising to run an austere, zero-deficit government.

In the letter published in financial newspaper El Financiero, Lopez Obrador sought to strike a conciliatory tone with investors who have been concerned by his threats to cancel lucrative energy and airport construction contracts.

“We’re not rebels without a cause and we keep our word. We know how to carry out our commitments. Don’t be frightened,” wrote the former Mexico City mayor, who is now making his third presidential bid.

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‘Solar Mamas’ Get Power to Rural Mexicans Utilities Can’t Reach

03/28/2018 Bloomberg

bulb.jpgIn a remote village on southern Mexico’s Pacific coast, 62-year-old fisherman Jose Barriento relaxed on a rope hammock after dinner in a darkened room with bare cinder-block walls and a corrugated metal roof. The only light was from the flickering screen of a television set — a luxury that was impossible in this community until his wife, Norma Guerra, became a “Solar Mama.”

Barriento and Guerra are lifelong residents of Cachimbo, a tattered town of about 150 people on a barrier island in Oaxaca state with lots of palm trees, few roads and infrequent rainfall. There also wasn’t any electricity, so everyone used candles or kerosene lamps. Guerra, 52, stopped going to school after fourth grade and spends most days helping her husband prepare and sell fish that, in a good week, can fetch 3,000 pesos ($160).

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Mexico appears to sign gas fracking contract with US company

03/26/2018 The Washington Post

energy - gas pumpMexico’s state-owned oil company has signed what appears to be one of its first big gas fracking contracts with a subsidiary of Texas-based Lewis Energy.

The Petroleos Mexicanos company said Monday it would drill and exploit non-conventional gas deposits with Lewis Energy Mexico in the portion of the Eagle Ford shale formation in Mexico.

While Pemex did not mention fracking, it is the method commonly used to drill for gas in the Eagle Ford area.

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Pemex signs shale contract with Lewis Energy in northern Mexico

03/26/2018 Reuters

pemexMexican state oil company Pemex said on Monday it had signed a contract with U.S. firm Lewis Energy for the exploration and extraction of a shale gas deposit in the north of the country, in the Eagle Ford formation.

Pemex said it expected the contract, in the Olmos field in the northern border state of Coahuila, to yield investment of $617 million, aiming to reach daily production of around 117 million cubic feet of gas by 2021.

Lewis Energy is a privately owned oil and gas operator based in south Texas. It has already drilled on behalf of Pemex in the Olmos field.

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Mexican secretary of state visiting San Antonio

03/22/2018 San Antonio Business Journal

luis videgarayMexican Secretary of State Luis Videgaray is coming to San Antonio to discuss the latest developments in the ongoing renegotiation of the North American Free Trade Agreement.

Videgaray is scheduled to speak at an April 6 luncheon at the St. Anthony Hotel as part of an event hosted by the Mexican Consulate General of San Antonio, the San Antonio Hispanic Chamber of Commerce and the Asociación de Empresarios Mexicanos.

San Antonio Hispanic Chamber of Commerce CEO Ramiro Cavazos told the Business Journal that Videgaray is expected to focus on NAFTA and touch topics such as the general state of U.S./Mexico relations, trade and tourism.

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Oil and gas leases in Gulf of Mexico bring in relatively tepid bids

03/21/2018 The Washington Post

energy- oil pumps 2Energy companies paid $124.8 million on Wednesday for oil and gas prospects in the largest Gulf of Mexico lease sale ever, but the winning bids fell well short of past sales.

The totals also appeared modest compared with the expectations raised by President Trump in his “America-First Offshore Energy Strategy” that was aimed at substantially enhancing the nation’s “energy dominance.”

Oil companies bid on 148 blocks, just 1 percent of the blocks put up for sale despite royalty breaks the administration provided for some of the shallower areas. The Interior Department’s Bureau of Ocean Energy Management had put 77.3 million acres up for auction.

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