This week the oil industry faced a mixed bag. While Russian and Mexican entrepreneurs pledge investment in Mexico’s energy sector, the country continues to experience drops in production and fuel continues to be stolen. Meanwhile, CFE is evaluating the transfer of its pipelines to CENAGAs and investigations are underway in LPG theft.
In Latin America, Argentina and Colombia are both boosting oil and gas efforts, and Brazil saw production increases in 2018. The Venezuelan crisis might be heading to a close as Mexican and Uruguayan representatives call for dialogue.
Ulises Hernández has worked at PEMEX for over 19 years and was appointed to his current position in March 2018. has been the President of the Petroleum Geologists Mexican Association and Vice President of the Mexican Geology Society. Last year, he spoke to Mexico Oil & Gas Review about the first farmouts.
Greater Investment, Less Production, More Theft
As government support is thrown behind PEMEX, CNH budgets are cut, calling into question the regulator’s capacity to carry out further licensing rounds.
Russian and Mexican entrepreneurs expect to invest US$15 billion in Mexico’s energy sector, it was announced this week.
Despite the huachicol, fuel continues to be stolen. In the first 23 days of the year, losses of MX$34 million were experienced.
Mexico’s Gas Outlook
CFE is evaluating the transfer of its pipeline network to operator CENAGAS. The utility currently markets over half of the Mexico’s gas demand, about 3.4Bcf/d. It also controls more than 7,800 km of pipelines either operating or under construction
Theft of LP gas costs PEMEX US$1 billion. One of the companies facing investigation is Grupo Soni.
Latin American Competition
Brazil decreased oil production but increased gas production in 2018.
Venezuela’s Maduro applauds Mexico and Uruguay’s attempts at dialogue to ease the woes of the beleaguered oil and gas country.