Category Archives: Energy

As he heads to Washington, Pena Nieto leaves behind a scandal-plagued year

Mexican President Enrique Pena Nieto holds his brow during December event. (Associated Press)
Mexican President Enrique Pena Nieto holds his brow during December event. (Associated Press)

By Katherine Corcoran / Associated Press

As he heads to Washington on Monday to meet with Barack Obama, Enrique Pena Nieto leaves behind a year that was hardly what he had envisioned.

The Mexican president and his team started 2014 carrying out a slew of newly passed reforms, from breaking up telecommunications monopolies to opening the nation’s energy sector, earning him international plaudits, including a Time magazine cover with his image above the caption “Saving Mexico.”

Then came a 1-2-3 punch of scandals: Soldiers killing 22 civilians in a questionable “shootout”; the abduction and presumed murder of 43 college students, allegedly at the hands of local officials and police in league with a drug cartel; and revelations that Pena Nieto and his treasury secretary live in luxury homes built and financed by a favorite government contractor.

Pena Nieto’s meeting with Obama at the White House on Tuesday comes amid what was supposed to be “Mexico’s moment,” a new era of transparency and reform.

The worst case price scenarios for Mexico

Oil barrelsFinancial Times – You don’t have to look far to see the impact on Mexico of falling oil prices (now close to a five-year low): just take a look at the trade balance of state giant Pemex . It slumped by half in one month, to $656 million  in October from $1.3 billion in September, and that was before the combination of Mexico’s lower production and lower world prices really began to bite.

So now would be a good time to take a cold look at how much damage falling prices could really do to Mexico as it prepares to open up its oil sector to private investment, what Mexico could do about it, what wider impact that could have, and what the US and the International Monetary Fund could do to help.

Cydsa entering new energy ventures with gas storage cave

Bloomberg – Cydsa is diving into new energy opportunities at home. The maker of products ranging from refrigerant gases to acrylic yarn announced a joint venture with Petroleos Mexicanos to store liquefied petroleum gas in a salt cavern for 20 years, at a planned cost of about $130 million.