July 17, 2015
The opening of Mexico’s oil industry was supposed to be a cornerstone of Mexican President Enrique Peña Nieto’s policy agenda. In an interview in 2013 Peña Nieto said, “Mexico is a country that has a lot of energy potential” and promised that with the influx of money from oil investors “Mexico can grow, [and] should be growing, by over 4%, 5%.” But in an environment of low oil prices Mexico’s offerings aren’t enticing international investors. On July 15 Mexico’s government auctioned off only two of fourteen possible concessions. According to a recent report from the Inter-American Dialouge, “Nine companies participated in the auction, seven of which submitted bids for one or more of the shallow-water blocks available in the southern Gulf of Mexico. A number of blocks received no offers, and others received bids that fell short of the minimum requirement for profit-sharing with the government.” While most analysts viewed the auction as a disappointment, Mexico’s Finance Minister Luis Videgaray called it “a good first step.”
July 17, 2015
07/17/15 Wall Street Journal
Enterprise Products Partners LP, one of the largest pipeline companies in the U.S., has agreed to sell its offshore Gulf of Mexico pipelines and services business to Genesis Energy LP for about $1.5 billion in cash.
The assets include Enterprise’s interest in nine crude oil and nine natural gas pipeline systems, as well as six offshore hub platforms.
Enterprise said the business doesn’t fit with its downstream crude oil or natural gas pipelines. The company said it could use the proceeds from the sale to expand its midstream system, such as acquisitions in the Eagle Ford and Permian shales.
For its part, Genesis expects the deal to be immediately accretive and to improve its credit metrics over time.
July 13, 2015
Photo by Flickr user tsuda
One word is crucial to the terms of Mexico’s historic first oil tender on Wednesday, but it does not appear anywhere in the bid documents. It is Ixtoc. For 30 years, until BP’s Macondo disaster in 2010, this Mexican well had held the lamentable distinction as the source of the world’s worst accidental oil spill.
Like the 14 exploration blocks being auctioned this week, Ixtoc-I was being drilled in the shallow waters of the Gulf of Mexico when it suffered a blowout in 1979. As a result the contracts being awarded this week come with stringent guarantees attached, in case there is another catastrophe.
July 2, 2015
07/02/15 Yahoo News
Photo by Flickr user Azfar Hakim
Royal Dutch Shell announced it will build a deep-water platform in the Gulf of Mexico for its Appomattox field discovery with an estimated startup close to 2020. Shell said Wednesday it authorized the major project after finding 20 percent in cost reductions and determining that it will produce a profit as long as the global benchmark for oil prices stays above $55 a barrel. International benchmark crude was priced at more than $62 a barrel early Wednesday.
September 17, 2014
09/15/14 Financial Times
Ever 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.
January 13, 2014
The Washington Post, 01/10/2014
More than 3,000 feet below the waves in the the Gulf of Mexico, with a drill bit wider than a human thigh, Mexico is digging for its future.
The gulf is one of the world’s great largely unexplored reservoirs of oil and gas, industry experts say, but the state-run oil monopoly Pemex so far has lacked the money and technical capacity to extract from its deeper waters. Now that the country has passed legislation opening up its beleaguered oil industry to outsiders for the first time in 75 years, the government is hoping that future partnerships with foreign companies to drill for hard-to-access undersea oil will mean billions of dollars of new revenue.
December 12, 2013
The Huffington Post, 12/11/2013
The bipartisan budget deal unveiled Tuesday night includes a provision that would open up new parts of the Gulf of Mexico for oil and gas drilling.
The proposal includes passage of the U.S.-Mexico Transboundary Hydrocarbon Agreement, which would allow development of oil and gas reserves that cross the international maritime boundary in the Gulf of Mexico. There has been a moratorium in place on drilling in the Western Gap portion of the Gulf since 2000, but it is set to expire at the end of 2013. The agreement included in the budget deal sets standards for both countries to undertake development in this area, and has already won approval from both the Obama administration and Mexico.