Category Archives: Energy

Mexico hopes to curb pipeline thieves by no longer shipping useable fuel

Gas pipeline in Nuevo Leon, near the Texas border Mexico's notorious drug gangs have been increasingly involved in fuel theft. (AP)
Gas pipeline in Nuevo Leon, near the Texas border
Mexico’s notorious drug gangs have been increasingly involved in fuel theft. (AP)

Associated Press

Slammed by a 70 percent increase in illegal pipeline taps in one year, Mexico’s state oil company announced Tuesday that it will no longer ship finished, usable gasoline or diesel through its network of ducts.

Analysts said it was a striking admission of Mexico’s inability to stop the fuel thefts, in which thieves drill into pipelines operated by Petroleos Mexicanos more than 10 times each day, on average.

“This is a big admission of the vulnerability of Pemex,” said George Baker, publisher of the Houston-based newsletter Mexico Energy Intelligence.

Petroleos Mexicanos, known as Pemex, said the number of illegal taps rose to 3,674 in 2014, up 70 per cent from 2013 and 137 per cent over 2012 figures. The market for illegal gasoline and diesel, in which drug cartels have been implicated, has more than doubled in the last two years.

Pemex lost an estimated $1.15 billion in fuel thefts in the first nine months of 2014, according to the latest figure available.

http://www.cbc.ca/news/world/mexico-s-pemex-curbing-pipeline-thieves-with-unusable-gasoline-1.2960890

Pemex puts refinery upgrades on hold in $4.1 billion cuts program

The government has given no clear detail of how the cuts will be made, to what extent they will affect different projects and to what extent they will affect jobs and salaries.
The government has given no clear detail of how the cuts will be made, to what extent they will affect different projects and to what extent they will affect jobs and salaries.

Platts

Faced with the need to cut $4.1 billion from this year’s budget because of falling oil prices, Mexican state oil company Pemex said Monday it would delay plans for refinery upgrades to maintain spending on maintaining crude and natural gas production.

Pemex also said contractors would be asked to renegotiate the terms of their current deals.

“Many of the contracts were signed at a time when market conditions were very different,” the statement said.

To soften the impact of the cuts, Pemex said its management has presented several initiatives to give the private sector a bigger role in the company’s investment projects in accordance with the terms of last year’s energy reform.

http://www.platts.com/latest-news/oil/mexicocity/mexicos-pemex-puts-refinery-updates-on-hold-in-26015118

Grupo Bal launches oil firm to tap Mexico’s energy reform

Alberto Bailleres is one of Mexico’s moguls looking to benefit from Mexico’s energy opening.
Alberto Bailleres is one of Mexico’s moguls looking to benefit from Mexico’s energy opening.

By Ana Isabel Martinez / Reuters 

Mexico’s Grupo Bal, the owner of the world’s largest silver producer, has launched an oil company to take advantage of the landmark opening of Mexico’s energy sector to private investment, a company spokesman said.

The company, to be called Petrobal, will be led by Carlos Morales, who resigned last year as head of exploration and production at state-run oil company Pemex.

Alberto Bailleres, one of Mexico’s richest men, owns Grupo Bal, which controls Fresnillo, the world’s largest primary silver producer. Grupo Bal also owns base metals operation Penoles, a pension fund and the Palacio de Hierro department store chain.

http://www.reuters.com/article/2015/02/11/mexico-penoles-idUSL1N0VL27820150211