Category Archives: Energy

Oil drillers face angry mob in Tecpatan

Bloomberg – When an angry mob torched City Hall in the southern Mexican town of Tecpatan last month, it sent a warning flare across a country already thrown into turmoil by Donald Trump.

The outrage was over oil, specifically the government’s plan to auction off a swath of land around their farming community to private drillers. The fact that today’s target is the government’s energy policy could spell trouble ahead.

https://www.bloomberg.com/news/features/2017-03-28/oil-drillers-face-an-angry-mob-in-mexico-s-guerrilla-country

Eni CEO says oil find likely bigger than expected

Reuters – Italy’s Eni said it expects that its recent crude oil discovery off the coast of Mexico would hold more than the 800 million barrels of oil it originally estimated. “This is an important find and we’ve found new layers of good light oil that make us think there’s more,” Chief Executive Claudio Descalzi said.

http://www.nasdaq.com/article/eni-ceo-says-mexico-oil-find-likely-bigger-than-estimates-20170329-00753

Mexico will hedge oil export prices

Bloomberg – Mexico plans “without a doubt” to protect the country against low crude prices for next year, Deputy Finance Minister Vanessa Rubio said, in a continuation of what’s become the world’s largest commodities hedging program. The amount of Mexico’s export basket to be protected through market operations, versus through its stabilization fund, has yet to be determined,

https://www.bloomberg.com/news/articles/2017-03-25/mexico-will-hedge-oil-export-prices-for-next-year-rubio-says

Eni hits oil in first offshore Mexico well

Financial Times – Italian oil company Eni has discovered “meaningful” reserves of oil off the coast of Mexico after drilling the first well by an international oil company since Mexico opened up its long closed oil sector to private investment under a 2013 reform. “Reserves are still being assessed, but the well indicates a meaningful upside to the original estimates,” Eni said in a statement.

https://www.ft.com/content/2cf085af-9d85-315e-ad63-9f09099a93ee

Energy could give U.S., Mexico common boon

LAT – Many analysts agree that in at least one sector — energy — the two countries still share opportunities for financial gain and have less incentive for conflict. Even if some terms of the North American Free Trade Agreement change, they say, energy can remain a boon for both countries’ economies, along with that of Canada.

Mexico to delay Round 2 shallow-water auctions

Offshore Magazine – Mexico will delay until June 19, 2017, the announcement of winners for the next phase of its oil and gas, the so-called Round Two tender, which includes 15 shallow-water areas in the Gulf of Mexico. The delay is designed to allow more companies to take part and to incorporate modifications suggested by industry.

http://www.offshore-mag.com/articles/2016/12/mexico-to-delay-round-two-shallow-water-auctions-by-three-months.html

Loosening of Mexico gas prices draws heat

WSJ – Mexico is moving to end eight decades of government-controlled gasoline prices, a step that will lead to a big jump in prices at the pump and could prompt a backlash against the government’s efforts to liberalize the country’s energy market. Price controls for gasoline will be scrapped in late March in parts of the country that border the U.S., where motorists are more accustomed to competition among gasoline stations, regulators said.

U.S. refiners cash in on Mexico fuel imports

Reuters – U.S. Gulf Coast refiners are cashing in on rising fuel demand from Mexico, shipping record volumes to a southern neighbor that has failed to expand its refining network to supply a fast-growing economy.

The fuel trade could top a million barrels per day (bpd) at times in 2017 as Mexico becomes increasingly dependent on the United States for strategic energy supplies and providing business worth more than $15 billion a year to refiners such as Valero, Marathon Petroleum and Citgo Petroleum.

http://www.reuters.com/article/us-mexico-usa-oil-insight-idUSKBN14B0FS

Will next Deepwater Horizon be in Mexico?

NYT – Mexico’s Energy Ministry began auctioning off the crown jewels of its oil reserves, deepwater tracts that, along with those for fracking, are supposed to set off an oil-and-gas rush south of the border. The auctions are a result of a 2013 law that opened the country’s oil and gas industry to private companies, after 75 years of public ownership. What could go wrong?

Plenty, as recent experiences in the United States suggest.

http://www.nytimes.com/2016/12/07/opinion/will-the-next-deepwater-horizon-be-in-mexico.html?_r=0