Seeking to improve understanding, communication, and cooperation between Mexico and the United States by promoting original research, encouraging public discussion, and proposing policy options for enhancing the bilateral relationship.
MEXICO CITY, Sept 2 (Reuters) – Mexico’s finance minister Rogelio Ramirez de la O said on Thursday that the government is in a position to continue supporting state oil firm Petroleos Mexicanos (Pemex).
Ramirez de la O, who recently took over as finance minister, said at an event organized by Moody’s Investors Service that he expects a closer relationship between Pemex and the finance ministry.
Crude prices recovered somewhat from last week’s freefall, boosted by improving signals coming out of East Asia (China reporting no locally transmitted infections) as well as the Ku-Maloob-Zaap platform seeing a major supply disruption in offshore Mexico. ICE Brent quotes swung back above the $70 per barrel mark, whilst WTI futures trended around $67.5 per barrel, further extending the widening Brent-WTI spread.
A fire on a PEMEX-operated offshore oil platform connected to the Ku-Maloob-Zaap complex (40% of Mexico’s crude output) killed at least 5 people, forcing the Mexican NOC to decrease output as the platform ran out of natural gas for reinjection.
MEXICO CITY, May 13 (Reuters) – The Mexican government announced measures intended to help state oil company Pemex with its debt obligations, including renewal of credit lines with JP Morgan, HSBC and Mizuho, as well as a gradual tax reduction for the firm, officials said on Monday.
Over the last 25 years, trade with Canada and Mexico has quadrupled, almost reaching $1.3 trillion and supporting 14 million American jobs through our trading partners.The U.S. energy benefits provided through this agreement makes even more vital that we continue this trade partnership through the U.S.-Mexico-Canada-Agreement (USMCA).
Recently the International Trade Commission’s review of the new USMCA finds that the agreement will improve the U.S. economy broadly, raising GDP by $68 billion and employment by 176,000 jobs. This will not surprise either economists or historians, who have long noted the benefits of trade. But a closer look at the impact of North American trade for America’s energy sector is also instructive. The economic benefits of North American trade for energy underscore the critical importance of passing this agreement and why withdrawing from the North American Free Trade Agreement (NAFTA) would be perilous.
Mexico’s cash-strapped state oil company Pemex swung into a 36bn peso ($1.9bn) loss in the first quarter but said things were moving steadily in the right direction and highlighted a sharp drop in fuel theft — a major cash drain.
The first-quarter loss compares to the 113bn peso profit recorded in the year ago period. However it was much smaller than the 157.3bn peso loss posted in the fourth quarter, reflecting the positive impact of a 121bn peso foreign exchange profit and the company’s new strategies, officials said.
Furthermore, they said the 15-year freefall in crude production was being controlled. Mexico’s total crude production in the quarter averaged 1.69m barrels per day, of which Pemex produced 1.661m and commercial partners produced 29,000, Alberto Velázquez, chief financial officer said in a conference call with analysts. The production goal for 2019 is 1.725m bpd.
“We have made improvements, although gradual ones. We have advanced in all areas. The challenges will require time to resolve but the trend is clear . . . Pemex is moving in the right direction,” Mr Velázquez said. The company expects to finish its long-awaited business plan by the end of June and to start bringing 20 new fields onstream by year-end.
MEXICO CITY (Reuters) – Mexico will next week announce which company or consortium will project manage the construction of President Andres Manuel Lopez Obrador’s planned refinery in his home state of Tabasco, the government said on Tuesday.
Lopez Obrador wants to build what would be Mexico’s seventh refinery to reduce Mexican reliance on U.S. gasoline imports, though the project is viewed by many energy experts as uneconomical and potentially risky due to its cost.
Energy Minister Rocio Nahle told reporters in Mexico City that state oil company Petroleos Mexicanos (Pemex)would begin receiving the proposals on Tuesday for analysis. Pemex will announce the winning proposal next week, she said.
Those companies competing for the job include two consortia, U.S.-based Bechtel with Italy’s Techint, and Australia’s WorleyParsons with U.S.-based Jacobs Engineering Group, as well as U.S.-based KBR and France’s Technip bidding individually.
“I’m terrified,” said one Mexican fund manager dealing with high net worth individuals in Mexico. He was talking about Andres Manuel Lopez Obrador, better known as AMLO. He’s been president for all of four months, but according to one money manager who did not want to be quoted on the record on this issue, he “has never seen” so many rich Mexicans taking money out of the country and parking it in the U.S.
Since he took over in December, AMLO has canceled a new and much-needed Mexico City airport on account of concerns that the contracts were crony capitalism and those days are over. Lenders to the developers panicked. Some members of his party, the National Regeneration Movement, said AMLO would tax or ban certain bank fees. During his campaign he said he would review the previous president’s policy to open offshore oil drilling to foreigners, a business once solely in the hands of Pemex, an oil company barely firing on all four cylinders. As everyone knows, the market hated all of these things.
President Andres Manuel Lopez Obrador’s fight against gasoline theft has reduced robbery by 95 percent as Mexico shifted fuel transport to trains and trucks, and improved security for pipelines, according to state-owned oil producer Petroleos Mexicanos.
Theft this month has declined to a daily average of 4,000 barrels from 81,000 in November, just before Lopez Obrador took office, representing roughly 11 billion pesos ($581 million) worth of fuel not lost to theft, the company said Tuesday. After distribution snags left gas stations across the country facing fuel shortages at the start of the year, supply has been fully restored, according to a presentation from the company.
Pemex is slowly shifting back to supplying gasoline by pipeline in the wake of increased government security, which Lopez Obrador said involved the deployment of 10,000 soldiers, marines and federal police. He predicted the new national guard will bolster that effort.
ACAPULCO, Mexico — Mexico’s deputy finance minister said on Thursday the government was considering using part of a $15.4 billion public income stabilization fund to pay some debt obligations for heavily leveraged state oil company Pemex.
The finance ministry is working on a new design for the fund to make it counter cyclical, deputy minister Arturo Herrera said in an interview with TV network ADN40, during a banking conference in Acapulco.
Grappling with Pemex’s financial health has been a key challenge for President Andres Manuel Lopez Obrador, who took office in December. The entity holds roughly $106 billion in financial debt, the highest amount of any state oil firm in Latin America.
Pemex is personal for Andres Manuel Lopez Obrador, who grew up in Mexico’s oil heartland at a time when the state company was a source of national pride.
Now that he’s president, the leftist leader has made it a priority to pull Pemex out of a two-decade slump. Investors are worried that the opposite could happen, with the company dragging Lopez Obrador down instead, and the economy with him.
Petroleos Mexicanos, the company’s full name, is already the world’s most indebted oil major, owing about $108 billion. AMLO needs to cut that debt, while boosting investment and output. His solution? Slashing taxes on the company that has been a cash cow for the state for decades. The market concern is that he will fail to restore Pemex to profitability (it’s been in the red since 2012), while opening a black hole in the government budget.