IndiaCore logo IndiaCore
India Core AD



Featured Reports & Publications
 Upcoming Titles


Overview of New & Renewable Energy Sectors in India


Energy Efficiency Scenario in India

India Core Reports
 




IndiaCore Site




 

 

 
 


Mexico to Privatize State Oil Company Pemex? , John C.K. Daly of Oilprice.com


Big potential changes south of the border. Mexican President-elect Enrique Pena Nieto has announced that he wants increased private investment in the nation's energy industry.

Will this include Mexican state oil company Petroleos Mexicanos, more familiarly known as Pemex?

The question is significant for the U.S.

Mexico is, according to the U.S. Energy Information Administration, now America's second largest source of imports. Of the United States' total crude oil imports averaging 9,033 thousand barrels per day (tbpd), Mexico provides 1,319 tbpd, exceeded only by Canada with 2,666 tbpd.

No, says Pena Nieto. Speaking to reporters in Ottawa last month, Nieto said, “I have publicly talked about Mexico's need to open ourselves up to the participation of the private sector in the energy sector, however this doesn't mean privatizing state run companies. I hope that this will happen with investments in Pemex but we can't postpone the benefits that Mexicans deserve to get through energy development.”

Following a lunch with Canadian Prime Minister Stephen Harper, Pena Nieto told reporters, " Clearly, if we evaluate Mexico's energy potential, it will require more infrastructure development and investment for exploration and exploitation of this important resource, and eventually, for refining."

The upside for Mexicans? The country's constitution stipulates that the nationn's oil and gas in Mexico belongs to the Mexican people, and Pemex is the only company allowed to develop it.

On a national scale this leaves Mexico without energy captains of industry or private oil companies, but bereft of foreign investment, technology and expertise.

And the sad reality is that Pemex oil production is in decline , from 2006 Pemex's average daily oil output was 3.3 million barrels per day, but in 2011, just 2.54 million bpd.

On the plus side, last month Pemex announced the discovery of a field 16 miles from Villahermosa, Tabasco, that may contain reserves of 500 million barrels of crude oil. In any case, Pena Nieto is moving quickly to reorganize Pemex . Pena Nieto has appointed energy secretary Joaquín Coldwell, president of the National Executive Committee of the PRI to replace current Pemex president Jordy Herrera. Pena Nieto is pressing forward on reforming the country's energy sector, in order to attract foreign investment. Mexican energy analysts believe that foreign capital could be crucial to reviving Pemex's declining oil output, sharing the profit on private projects for exploration and production in deep waters as well as allowing foreign private capital to participate in the new business of developing new unconventional shale gas and shale oil reserves.

But Pena Nieto's efforts to open Mexico's closed energy sector still face an uphill struggle, as any real energy reform would require Constitutional changes, which have stymied previous governmental efforts.

Still change is in the air, as Nieto and leaders of Mexico's three largest political parties have agreed to work toward allowing competition into some of Pemex's operations, as well as revising mining royalty agreements. Nieto signed a document stating that Mexico will make “the necessary reforms to create a competitive environment in the economic processes of refining, petrochemical, and transportation of hydrocarbons.”

As Mexico is currently the world's No. 7 oil producer, the implications of Nieto's efforts are significant.

But U.S. oil companies operating in the Gulf of Mexico might have competition for Pemex assets. Four months ago China's State-owned China National Offshore Oil Corp. proposed buying Canada's Nexen Inc. (NYSE:NXY), paying roughly $15.1 billion for Nexen Inc.'s common and preferred shares for Nexen's worldwide operations including the North Sea, Colombia and the Gulf of Mexico. The Gulf of Mexico concessions from the U.S. government are the potential deal breaker for CNOOC, so, should other operations there arise, then America's oil companies can likely expect some eastern competition.

Source: http://oilprice.com/Energy/Crude-Oil/Mexico-to-Privatize-State-Oil-Company-Pemex.html

 

 


About the Author

 

John C.K. Daly of www.Oilprice.com

line

The information and opinions expressed here are believed to be accurate, based on the best judgement available to the authors. The statements or opinions or views are those of the author and are not necessarily agreed or authorised or endorsed by IndiaCore.

This section is a neutral platform and everybody is on the same footing. IndiaCore acknowledges occasional differences in opinion and welcomes the exchange of different viewpoints.

IndiaCore.com, India Core Publishing, International Publications & Information Services (IPIS) and/ or the authors cannot accept legal liability for any error nor do we assume any responsibility or any liability for any reliance thereon or for any loss to any person/ organisation caused by inaccuracy in the information available. Any discrepancy found may be brought to our notice at info@IndiaCore.com


India Core is a commercial business d
isseminating comprehensive and well-researched information on the infrastructure & core sectors scenario in India through our online & offline platforms since early 2000.

We provide information products & services on payment basis and are unable to provide specific information or advice free to users.

Further Bulletins & Articles & updated information is accessible only to India Core members/ subscribers.

To gain access, please login if you are a member/ subscriber:


Member's Email
Password
line


For Fee Based detailed analysis & value added information on the Indian Core Sectors, please contact us at info@IndiaCore.com

 
Upcoming IndiaCore Organised/ Partnered Events

Renewable Energy for Indonesia 2017, November 28- 29, 2017 || Jakarta.INDONESIA

renewable-energy-for-indonesia-2017


Global Geothermal Energy Summit 2017, November 29 - 30, 2017 || Amsterdam

global-geothermal-energy-2017


Electricx 2017, December 3- 5, 2017 || EGYPT


Solar-Tec 2017, December 3- 5, 2017 || EGYPT


Critical Control Rooms, December 4- 6, 2017 || TBC

critical-control-room-2017


22nd World Cardiology Conference, December 11- 12, 2017 || Rome. ITALY

world-cardiology-conference-2017


EXCON 2017, December 12- 16, 2017 || Bangluru. INDIA

excon-2017


World of Asphalt Show & Conference 2018, March 6- 8, 2018 || HOUSTON. TX

world-of-asphalt-2017


China International Vending Machine & Self-Service Facilities Fair (China VMF 2018), March 4- 6, 2018 || CHINA

china-vmf-2018


Middle East Electricity 2018, March 6- 8, 2018 || UAE


The 18th China International Petroleum & Petrochemical Technology and Equipment Exhibition, March 27- 29, 2018 || China. BEIJING

cippe-2018


Asia Warehousing Show 2018, May 2- 4, 2018 || Bangkok. THAILAND

asia-warehousing-show-2018


11th World Bioenergy Congress and Expo 2018, July 2– 4, 2018 || Frankfurt. Germany

world-bioenergy-congress-and-expo


“25th Euro Congress on Pediatric Heart Disease and Health” 2018, August 13- 14, 2018 || Dublin, Ireland

pediatric-heart-disease-2018


24th World Cardiology Conference, September 17- 18, 2018 || Hong Kong

world-cardiology-conference-2018


“26th Annual Cardiology and Cardiovascular Nursing Congress” (Cardiac Nursing 2018), November 21 - 22, 2018 || Singapore

cardiac-nursing-2018


Asia Cold Chain Show 2018, November 28– 30, 2018 || Bangkok. THAILAND

asia-cold-chain-show-2018


Road Infrastructure- Safety, Operation & Management, TBA || Mumbai. INDIA


Mining & Mineral Exploration Conclave- ‘Need for Modernisation & Capacity Enhancement in the Indian Mining Industry’, TBA || New Delhi. INDIA


The Madhya Pradesh Agri Summit & Mela, (TBA) || Bhopal. Madhya Pradesh


'Thermal Power India’, TBA || New Delhi. INDIA

TPI-2012


Indian Solar Thermal Energy & PV Conference, TBA || New Delhi. INDIA


Energy Efficiency Forum, TBA || New Delhi. INDIA


Smart Energy & Smart Metering India- 'Convergence of IT, Automation, Control & Communication', TBA || New Delhi. INDIA


Pharma CIO Conclave & Awards 2017, August 9, 2017 || Mumbai
Directories
Conference Proceedings
 

Join our Mailing List to receive Information Updates on Events, Happenings, Book Release, Developments in the Core Sector

IndiaCore listing

 
       
IndiaCore Banner
 


Copyright © IndiaCore. All Rights Reserved. Terms of Use & Privacy Policy
Site Designed & Maintained by India Core
IndiaCore.com - The Online Resource for Information on the Indian Infrastructure & Core Sectors