A massive discovery in Mexico could mark the dawn of a new oil boom

June 16, 2015

06/16/15 Business Insider

energy - oil barrelsThe Mexican state-owned oil company Petroleos Mexicanos, or Pemex, says it has discovered one of the most copious group of oil fields in the shallow waters of the Gulf of Mexico, its largest such discovery in five years.

The five fields, situated off the states of Campeche and Tabasco, have total proven, probable, and possible reserves that may be as high as 350 million barrels of crude oil equivalent and could produce as much as 200,000 barrels a day, Pemex CEO Emilio Lozoya told an energy conference in Guadalajara on Wednesday. He called the find an “achievement … of great magnitude.”

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Mexico’s petrochemical majors find bullish market after energy reforms

June 5, 2015

06/05/15 Hydrocarbon Processing

energy - oil_rigThe rally shows that Alpek and Mexichem are finally starting to benefit from the 2013 Mexican law overturning a ban on private drilling dating to 1938. After the oil rout slowed the energy-law rollout, the companies now are getting the best of both worlds: cheaper raw materials and a stable oil-price outlook.

Mexico’s two largest petrochemical companies, among the hardest hit by a global plunge in oil prices, are now top performers as crude’s rebound helps them take advantage of a landmark energy industry opening.
“The market believes the worst has passed,” Monex analyst Fernando Bolanos said. “They see oil prices benefiting the companies’ results.”
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Report: How to make business sense of Mexico’s energy reform

June 3, 2015

6/1/2015 Fuel Fix

energy- oil pumps 2Mexico 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.

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Download the report here.

Shale to Play Significant Role in Mexico’s Energy Reform Success

June 3, 2015

6/2/2015 Rigzone

telecomunicaiconesMexico’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.

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Download the report here.

NEW REPORT: Economic Impact and Legal Analysis of the Shale Oil and Gas Activities in Mexico

June 3, 2015

preliminary-report-bannerOpportunities 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.

Energy Reform: will Mexico’s newest revolution boost renewables – or just fossil fuels?

June 3, 2015

6/3/15 The Guardian

For the first time since 1energy - oil pumps938, the world’s largest oil companies are preparing to invest in Mexico. The last time they were there, things ended badly: President Lázaro Cárdenas seized their assets, created state-owned oil monopoly Petróleos Mexicanos – or Pemex – and sent foreign competitors packing.

Now, 77 years later, Mexico is inviting them back. As part of its far-reaching hydrocarbon and electricity reforms, the country is reopening its largely untapped oil and natural gas reserves to foreign investors and competitors. The process will begin in earnest in mid-July with an initial auction of 14 oil exploration areas in the Gulf of Mexico.

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Videgaray Says Mexico to Hedge 2016 Oil Exports, Limit New Debt

April 20, 2015

4/18/2015 Bloomberg Business

luis videgarayMexico will hedge its 2016 oil exports to protect against lower prices even with crude near a six-year low, and the nation has little room to increase its debt to avoid spending cuts, Finance Minister Luis Videgaray said.

“There are certainly lower prices that can happen and could represent risk, so yes we will hedge,” Videgaray said in an interview Saturday in Washington. “Certainly it will not be a hedge at the price we were able to get for this year’s hedge, but we’ll take what the market gives us.”

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