June 3, 2015
6/1/2015 Fuel Fix
Mexico is opening its oil and gas fields to foreign investment for the first time in decades – a potential business bonanza for companies that can navigate the changes.
A preliminary report released last week on Mexican energy reform was prepared by the University of Texas at San Antonio Institute for Economic Development, the Universidad Autonoma de Nuevo Leon, the Asociacion de Empresarios Mexicanos and the Woodrow Wilson Center.
The report is aimed at companies on both sides of the border trying to figure out how to get a toehold in the new energy market in Mexico.
Download the report here.
June 3, 2015
Mexico’s shale resources will play an integral role in the success of Mexico’s energy reform, but significant challenges will need to be addressed, including the construction of roads, housing, rail, pipelines and other infrastructure, as well as skilled workforce development and security issues.
The country is well-positioned to take advantage of unconventional extraction techniques due to its close proximity to major shale development in South and West Texas, according to a preliminary report that examines the impact of energy reform on the Mexican states of Coahuila, Nuevo Leon, Tamalipas, and Veracruz. It also outlines the new institutional framework of Mexico’s energy sector.
The report is the result of a collaboration between the University of Texas at San Antonio (UTSA), Universidad Autonoma de Nuevo Leon, Asociacion de Empresarios Mexicanos, and the Mexico Institute of the Woodrow Wilson International Center for Scholars.
Download the report here.
June 3, 2015
Opportunities for unconventional or shale oil and gas production in Mexico are in the earliest stages of development. While shale gas production increased significantly in the U.S. over the past decade or so, and shale oil production over the past few years, no other country in the world has yet to replicate that success. Due to its close proximity to major shale field development in South and West Texas, Mexico is particularly well positioned to take advantage of unconventional extraction techniques. However significant challenges will have to be addressed.
This preliminary report focuses on the impacts the Energy Reform will have on the Mexican Economy. The core study area concentrates on the economic impact on the following states: Coahuila, Nuevo León, Tamaulipas and Veracruz. This report contains a general overview on the Energy Reform, an economic background on oil and natural gas (especially trade between the U.S. and Mexico), a state level profile, infrastructure, and educational issues specific to oil and natural gas activities.
The purpose of the study is to gauge the growth and the effects that the oil and natural gas industries have for residents and decision makers in the aforementioned Mexican States. Although industry developments and other social issues may be still considered, the scope and breadth of these impacts are very large, and tangible effects on the region will be felt for years to come.
Click here to download the report.
March 12, 2015
03/11/15 Wall Street Journal
Mexico’s proven oil and gas reserves fell by 3.1% last year to 13.02 billion barrels of crude-oil equivalent as national oil company Petróleos Mexicanos was unable to find new reserves to replace all the petroleum it took out of the ground last year, the National Hydrocarbons Commission said. Reserves of crude oil stood at 9.71 billion barrels as of Jan. 1, versus 9.81 billion a year earlier, the commission said late Tuesday. Natural gas reserves were 15.29 trillion cubic feet, compared with 16.55 trillion cubic feet in 2014. Proven oil and gas reserves are equivalent to 10 years of production at current rates.
July 23, 2014
07/23/14 Business Insider
Mexico’s Senate has approved legislation to implement historic constitutional reform that would open the country’s oil and gas industry to foreign investment for the first time since 1938.
In an 85-26 vote, lawmakers passed the last of four packages of laws Monday to end the monopoly held by state oil company Pemex for 75 years in the exploration and exploitation of energy resources.
July 10, 2014
Mexico is proposing to introduce fuel price caps to replace government-set pump prices in an interim measure as the nation prepares to open up its energy industry to competition for the first time in 76 years.
Under the proposal, price gains from January will be tied to inflation and private gas stations will be able to adjust prices freely under the capped level, Deputy Energy Minister Lourdes Melgar said yesterday in an interview. At present, pump prices rise at a fixed monthly rate set by the government.
January 23, 2014
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.”