Pemex Chief Touts Mexico's Energy Reform in Washington

WorldEnergyNews.com
Thursday, April 24, 2014
Emilio Lozoya (courtesy Pemex)

While energy reforms have opened the door for Mexico's state-run energy company to expand overseas, its focus for now will be on developing its "low-hanging fruit," the head of Pemex said on Thursday.

Pemex Chief Executive Emilio Lozoya spoke in Washington, D.C., at the annual conference of the Export-Import Bank, the official U.S. export credit agency, on a panel discussing the next frontier of investment opportunities.

Lozoya, a 39-year-old Harvard-educated executive and son of a former finance minister, touted the potential benefits of Mexico's massive energy reform to Mexico's economy, the central American region and the United States.

While it has longer-term ambitions overseas, for now Pemex remains focused on attracting U.S. companies interested in Mexico's untapped potential.

"In Mexico there are many reserves that are accessible compared to other parts of the world. That does not mean that Pemex will not go international at some point, but right now the easier opportunity is in Mexico," he said.

He said Mexico's massive but aging energy sector "needs the hundreds of companies that are trading in the United States to come to Mexico."

Not only would that give Mexico a much-needed boost, but it would be a job creator for the United States, Lozoya said.

Signed into law late last year by President Enrique Pena Nieto, Mexico's energy reform allows for new contractual options for Pemex, as well as foreign or private oil companies, including production-sharing contracts and licenses.

So-called secondary legislation that will set commercial terms for the contracts and other regulations is expected to be approved by Mexico's Congress in May.

Lozoya added that the shale gas boom in the United States also opens up a window of opportunity not only for Mexico, but for Central America as well.

Various infrastructure projects in the works will allow Mexico to tap into the bounty of natural gas in the United States, which will transform Mexico's economy, he said.

"This will mean that we will go from consuming 6 percent of the total electricity in Mexico to producing 15 percent of it," he said, adding that it will move the country away from a reliance on expensive fuel oil.

"The impact on the economy will be great," Lozoya said, noting that the energy reform is expected to increase investment in Mexico to $50 billion to $60 billion per year.

The economic impact could also be felt further south in Central America, where natural gas is priced around $20 per thousand British thermal units, compared with roughly $4.50 in the United States.

"If Pemex together with its partners builds the energy infrastructure to bring this cheap feedstock to Central America, we will create economic opportunities in Central America," he said, noting this could also reduce the major drivers of emigration.

(By Valerie Volcovici; Reporting by Valerie Volcovici; Editing by Dan Grebler)

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

Oil is on the Rise

Oil prices rose in early trading on Monday as Asian markets opened strongly into a holiday-shortened week and as consensus spread that Brent crude prices would

Fighting for Ports Escalates in Libya

Military planes loyal to Libya's recognised government attacked on Sunday an opposing force that is seeking to seize the country's two biggest oil ports, officials said.

Security Threat in Yemen Shuts CNOOC's Nexen Facility

CNOOC Ltd's Nexen unit is shutting operations at an oil field and processing facility in Yemen due to a security threat, a Nexen spokeswoman said on Sunday.   The

News

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

People in the News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Damen Shipyards Galati wins Dutch Romanian Award

Damen Shipyards Galati has been presented with the Dutch Romanian Business Award for its Corporate Social Responsibility plan, particularly the Group’s community investment initiatives.

Lowrance Renews Insight Genesis College Cup

Lowrance®, a world-leading brand in fishing electronics since 1957— announced today the renewal of its Insight Genesis™ College Cup. In its second year, the

Government Update

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

MARAD Publishes US ATB, ITB Database

The U.S. Maritime Administration (MARAD) released what it is calling a first-of-its-kind public database that chronicles U.S.-flagged, privately owned domestic

Costa Rica Approves APM Terminals Project

Port operator APM Terminals, a unit of Denmark's A.P. Moller-Maersk, said on Friday Costa Rica's environment agency had approved the construction of its Moin Container Terminal project.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1659 sec (6 req/sec)