Pemex Chief Touts Mexico's Energy Reform in Washington
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 September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Urals Weakens Further in Baltic

Russian Urals crude differentials continued to slide in the Baltic on Thursday amid a flurry of activity with softer refining margins, pushed down by higher oil prices, still keeping buyers at bay.

Seadrill Hopes to See Market Turn in 2017

Offshore rig driller Seadrill is facing another two years in the doldrums but hopes the international rig market could turn around in 2017.   Rig rates have more

Eni Arctic Service Rig Extension Okayed

Italian oil company Eni has received permission from Norway's Petroleum Safety Authority to extend the use of a service rig on its troubled Arctic Goliat oil field offshore Norway until Nov.


Amid Commodity Crisis, LPG Emerges as Accidental Bright-spot

Liquefied Petroleum Gas, long a niche product used by the poor to cook and the rich to barbecue, has become a rare bright spot amid a broad commodities rout, riding

Collision Course with a Hurricane: How Doomed US Ship Met its End

The ill-fated U.S.-flagged El Faro cargo ship sunk by Hurricane Joaquin was sailing at near full speed into the center of the storm before it lost propulsion amid mountainous waves and brutal winds,

Cordero Reconfirmed as FMC Commissioner

Mario Cordero was reconfirmed today as a U.S. Federal Maritime Commissioner.   Cordero joined the Federal Maritime Commission (FMC) as a Commissioner on June 3,

People in the News

Captain of Ill-fated El Faro was Known as Trusted Mariner

The captain of the ill-fated cargo ship that sank in a hurricane off the Bahamas with no survivors last week was an experienced and highly trusted mariner who had spent a lifetime on the water,

Cordero Reconfirmed as FMC Commissioner

Mario Cordero was reconfirmed today as a U.S. Federal Maritime Commissioner.   Cordero joined the Federal Maritime Commission (FMC) as a Commissioner on June 3,

Chiarello: TOTE Continues Support to El Faro Families

Anthony Chiarello, President & CEO of TOTE, owner of the cargo ship presumed to have sunk with 33 mariners aboard last week amid Hurricane Joaquin, issued a statement

Government Update

Cordero Reconfirmed as FMC Commissioner

Mario Cordero was reconfirmed today as a U.S. Federal Maritime Commissioner.   Cordero joined the Federal Maritime Commission (FMC) as a Commissioner on June 3,

White House Backs El Faro Investigation

President Barack Obama on Wednesday offered condolences to the families of the 33 sailors presumed to have lost their lives aboard cargo ship El Faro which is believed

Steel Cut on UK Navy’s Newest Warship

Construction has begun on a new warship for the U.K. Royal Navy as the Minister of State for Defense Procurement, Philip Dunne MP cut the first steel in Glasgow today.

Maritime Careers / Shipboard Positions Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1857 sec (5 req/sec)