Between successful project conclusions, natural gas storage facilities in the pipeline and a counter-monopolistic investigation, Mexico’s natural gas market had contrasting news last week. Meanwhile, US Treasury Secretary Steven Mnuchin dented IOCs’ stock market value, while ExxonMobil is facing business difficulties and OPEP members agreed to increase crude oil production.
Ready to drill through the week’s top stories? Here’s your weekly news roundup:
Mexico’s gasoline sector wants clarity over inflation-protected price. The Ministry of Finance’s current weekly gasoline price adjustments will be modified by a yearly adjustment to inflation to avoid gasoline price hikes, as per President-Elect Andrés Manuel López Obrador’s plans. The private sector wants a detailed scheme over how this mechanism is expected to work.
CNH modifies established calendar for Licensing Rounds 3.2 and 3.3. The changes come at the request of the Ministry of Energy, parallel to comments and suggestions from companies interested in participating. The new dates also provide the industry’s regulator more time to interact with the upcoming administration regarding the licensing process and its contract terms.
Local community successfully represented in natural gas pipeline project. The Topolobampo natural gas pipeline, developed by TransCanada, is set to provide natural gas to Sinaloa and Chihuahua. The pipeline was put into operation on July 16, 2018 after successful completion of federal government-led indigenous consultations with the impacted communities.
Mexican oil price hikes increase the fuel’s participation in the country’s government coffers. Despite the country’s difficulties in revamping national oil production, the steady increase of crude oil in international markets added MX$396 billion of oil income in the first five months of 2018, representing 18.9 percent of the federal government’s total income in that period. A sharp contrast compared to 2016, where crude oil barrels reached a US$46.30 price tag, representing a 13.8 percent share of income, the lowest since 1990.
COFECE investigation drops natural gas operator’s margins. The Federal Commission of Economic Competition (COFECE) is investigating possible monopolistic practices in Mexico’s LPG market, reducing the expected margins of natural gas distributors.
Mexico poised to reach deepwater milestone. With the licensing rounds’ investments in deepwater developments, Mexico is estimated to increase its deepwater oil production by 38 percent toward 2030, with 2.1MMboe/d.
CENAGAS is analyzing the location of a natural gas storage project. Tamaulipas, Veracruz, Tabasco and Chiapas are among the candidates to develop a 10bcf storage facility.
US’ Iran sanction plan harms IOCs. After Treasury Secretary Steven Mnuchin announced Iran sanctions are planned and meant to cripple the country’s oil exports, ExxonMobil, Chevron, ConocoPhillips and BP, to name a few, witnessed a drop in their stock market value.
ExxonMobil facing complicated horizons. Investing in high-risk, costly projects in a context of plummeting oil barrel prices that have yet to increase the oil giant’s 4MMb/d oil production are but a few of the issues that ExxonMobil is looking to solve.
Brent drops over slow Chinese economic expansion and its ongoing trade war with the US. The North Sea’s oil price index decreased by more than 4 percent, reaching the lowest price tag in three months.
OPEP adjusts petroleum pact to 120 percent. Based on the decreased production witnessed in Venezuela and Libya, the oil organization’s initial provision to reduce production to 147 percent was reconfigured to 120 percent, signaling a production increase.
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