In 2015, the Round One Tender in Mexico will test the new legal framework. Attorney at Mexican legal firm Goodrich, Riquelme y Asociados, David Enríquez, discusses his…
READ MOREMexico's Energy Industry
in figures
Oil reserves6.1 billion barrels
Oil production1.93 million bopd
Gas reserves200 bcm
Gas production29.2 bcm
Mexico: Latin America's New Energy Powerhouse
The implementation of the Energy Reform Act in August 2014 marked a new era not only for the Mexico’s domestic hydrocarbons industry, but also for the country itself. Among the changes resulting from the act are the restructuring of NOC Pemex to increase efficiency and the opening of oil and gas value chain from E&P to retail to private foreign and domestic companies. Since 2015, two four-tender rounds have taken place, as well as the first auction of Round 3.1. Three more tenders were scheduled for 2018, but have been postponed. Additionally, in 2016, Pemex began farming out some of its more complex acreage to private companies with greater technological expertise and financial resources.
In addition to the reform, one of the biggest drivers of change in Mexico’s energy industry is growing demand for natural gas. Consumption is expected to rise by 64% between 2013 and 2027. Since 2010, Mexico’s gas imports from the USA have grown by 300%, and the US Energy Information Administration predicts they will double by 2019. Demand is outpacing storage and distribution capacity, a problem that spurred the government to lay out the Five-Year National Integrated Natural Gas Transportation and Storage Plan 2015-2019 which aimed to expand the natural gas pipeline network.
Despite being a crude oil exporter, Mexico has been a net fuel importer since 1998. Pemex has taken steps to stem losses downstream, by partnering with private investors for upgrades and expansions at several of its ageing refineries. Additionally, the country’s new president is promoting a project to build a new mega-refinery in Tabasco. The liberalisation of fuel prices across the country was completed in November 30, 2017. That, coupled with fuel demand growth, has created an environment in which local and foreign, small and large fuel retailers can prosper. In March 2017, BP became the first private foreign fuel retailer in the Mexican market. Since then, several others have entered the sector.
Mozambique's Coral Sul FLNG has passed its performance test, achieving LNG production of 3.4 million tpy.
READ MOREThe US government has unveiled plans for 12 offshore wind auctions over the coming five years, including four by end-2024.
READ MOREMexico's presidential frontrunner has unveiled a plan to invest USD 13.57 billion in energy generation projects through 2030.
READ MORECNOOC has filed for arbitration to assert its right to first refusal on Hess' stake in Guyana's Stabroek block, joining…
READ MORESubsea7 has won a contract from Woodside Energy to provide subsea installation services for the Trion field, Mexico's first…
READ MOREExxonMobil has filed for arbitration to protect its right of first refusal in Guyana’s Stabroek block.
READ MORELegal and consulting group Laub & Quijandría has advised on some of the most important energy projects in Peru including the Camisea field development and the…
READ MOREThe Pemex Office of Corporate Procurement (DCPA) centralises the purchases of goods, services and operating leases for the entire national oil company. Chief…
READ MOREWith many rigs yet to be chartered and day rates taking a beating, the offshore exploration and production market is entering rocky waters. On the sidelines of…
READ MOREMoody’s announced last week that it was downgrading the Russian government’s debt rating from Baa1 to Baa2, just one notch above junk status. The decision came as a…
READ MORELocated across the maritime border between the US and Mexico, the Perdido Fold Belt is a geological formation that encompasses an area of 40,000 square kilometres,…
READ MOREPemex’s chief financial officer, Mario Beauregard Álvarez, faces the task of slimming down the national oil company’s liabilities and creating a more efficient…
READ MOREOn Thursday, the Mexico Federal Electricity Commission (CFE) awarded a $767-million bid the contract for the construction of a 230-kilometre pipeline capable of…
READ MOREOn January 2, 2015, the Mexican government launched the country’s first sovereign oil fund with the goal of supporting stabilisation and development through the…
READ MOREOn Monday, bidding started for the first of Mexico’s oil and gas blocks to be awarded in the Round One tender.
The initial areas up for bidding include 14 oil and…
READ MOREWHOSE PLATFORM IS THIS?
ASK US
- Do you have a question for The Energy Year about oil and gas?
- If we know, we’ll tell you.
- If not, we’ll ask the experts in the field.