Admitting that excessive public financing of certain sectors in the energy industry, such as petrochemicals, would generate unnecessary debt, AMLO finalized an agreement last Wednesday for private investment with industry leaders in the Business Coordinating Council (CCE).
The agreement stipulates that the majority of petrochemical investment will be privatized and that private ownership of midstream infrastructure will remain uninterrupted by government intervention.
Check out our Interview of the Week with Juan Pablo Vega, CEO of Naviera Integral, where we discussed how Naviera Integral has reshaped its business lines to maintain its advantages in a competitive market. Read it here!
Three Operators Return Half of their Blocks
Also on Wednesday, CNH announced that three operators have either begun or finalized the process of returning close to half of the production blocks they were awarded as part of the bidding rounds, due to reasons that included low productivity, legal obstructions to field development and lack of profitability.
The operators in question were the consortium formed by Citla Energy and Capricorn Energy, Iberoamericana de Hidrocarburos and the Jaguar E&P subsidiary Pantera E&P.
COPARMEX Wants Farmouts & Fracking
The Mexican government must expand the liberalization of the energy sector so that it includes the re-establishment of farmouts and the development of fields through fracking technologies, said COPARMEX President Gustavo de Hoyos on Thursday.
“We ask AMLO to reflect on this matter from a technical standpoint, rather than an ideological one,” said Hoyos.
Job Creation Up in Oil States
Tabasco and Campeche, the two states with the highest percentage of their GDP from oil and gas activities, are reported to have generated close to 5,000 jobs within the first six months of 2019.
These numbers represent a 50 percent increase in job generation over the same six-month period in 2018.
Goldman Sachs Forecasts Oil Demand Decrease
Oil demand is now calculated at 1.275MMb/d by Goldman Sachs, down from its original figure of 1.45MMb/d at the beginning of the year.
The Wall Street bank added that its 2020 oil demand forecast remains fixed at 1.45MMb/d.