The Oil & Gas Year Mexico 2018
The past year has seen many changes in Mexico’s oil and gas industry. The country is beginning to see the early results of the energy reform throughout the hydrocarbons value chain. As global oil prices rebound, Mexican regulators are fine-tuning policies to create an industry that is attractive to investors and competitive against opportunities in other oil and gas markets in the region.
The transformation of Mexico’s upstream sector has so far been successful, despite having been closed to private participation for years. The country concluded Round 1 and Round 2 with the award of many licences to private players, reinforcing the idea that Mexico has world-class oil and gas resources. New players have made significant discoveries and Pemex is moving forward with its own E&P projects as well.
Pemex itself has undergone several shifts, with Carlos Treviño Medina taking the reins, and the NOC’s upstream and downstream business approach reorienting towards partnerships. Pemex has already joined several major IOCs and smaller E&P players in deepwater, shallow-water and onshore acreage, allowing the company to access much-needed expertise, capital and technology. Downstream, the NOC is prioritising alliances that will help it carry out modernisation and refurbishment programmes at its refineries, which experienced difficulties in 2017.
In a move welcomed by retailers both inside and outside the country, regulators freed fuel prices in 2017. The process is expected to result in a more efficient and competitive market. Local and foreign firms are looking to take advantage of new opportunities to import, transport, distribute and sell fuel.
The power sector is among those that have seen the most development since Mexico’s energy reform legislation was passed. As economic growth pushes rising electricity demand, many gas-fired power projects are being developed. The country is also striving to generate more power from cleaner sources in the coming years, driving increased interest in renewables.
The Oil & Gas Year Mexico 2018 analyses the changing landscape of the domestic hydrocarbons industry in light of newly implemented legislation and policies triggered by the energy reform under President Enrique Peña Nieto. Key insiders interviewed for the book include Secretary of Energy Pedro Joaquín Coldwell, Undersecretary of Energy for Hydrocarbons Aldo Flores Quiroga, Energy Regulatory Commission chairman Guillermo Garcia Alcocer, National Hydrocarbons Commission president commissioner Juan Carlos Zepeda Molina and Pemex general director Carlos Treviño Medina, as well as many top players operating in Mexico’s energy industry.
Extensive in-depth analysis is supported by comprehensive maps, illustrations and graphs to create a market guide essential for players seeking to either expand their operations or enter the Mexican market.