Mexico’s oil and gas industry faced challenges this past week as government actions intended to lower gas prices for consumers at the pump failed to take hold. There was also criticism of the highly-debated Dos Bocas Refinery project that has been promoted as the beginning of PEMEX’s turnaround and the start of Mexico’s energy sovereignty.
This week’s Interview of the Week is with Javier Zambrano, Executive Director of Jaguar E&P, who offers a behind the scenes insight into the company’s successful strategy to win 11 onshore blocks. Jaguar is a Mexican E&P company that was founded in 2013 and has a stake in 11 onshore blocks
Dive into Mexico’s oil and gas news roundup, right here.
- President López Obrador Says Gas Stations, Distributors Focusing on Profits
Mexican President López Obrador accused gas stations and gasoline distributors of focusing on profits and asked that they “act responsibly” after gas prices at the pump failed to go down, and in some cases have risen, despite the government’s fiscal support to manage price instability.
The National Organization of Petroleum Retailers (ONEXPO) defended the distributors, explaining that the vast regional differences and difficulties in delivering gas in Mexico have not helped price reduction efforts.
For a deeper dive into AMLO’s argument, read the full article here.
- COFECE Says Further Competition Needed to See Gas Prices Fall at the Pump
Following the president’s criticisms, Alejandra Palacios, president of Mexico’s Federal Commission of Economic Competition (COFECE), said the lack of falling gas prices at the pump is down to the lack of competitiv qity between gas stations.
Gas prices in April are within the same range as those in March in spite of the fiscal support that the López Obrador administration has had in place since February, intended to help protect Mexican consumers against international fuel price changes.
According to Palacios, legislation that governs the minimum distances separating new gas stations and a lack of infrastructure are reasons that prices have not dropped as expected.
Interested to find out more? Read on.
- IMCO Predicts 2% Success Rate for Dos Bocas Refinery
The influential Mexican Institute of Competitivity (IMCO) on Tuesday published a damning report on the Dos Bocas refinery project, stating that the refinery – one of the current administration’s flagship public projects and held up as a decisive step towards Mexican energy sovereignty – should be canceled. The report, which IMCO claims assessed 30,000 different scenarios, said that the project “generates more costs that benefits” and predicted it has only a 2 percent chance of success.
Read IMCO’s report in full here.