eagle ford shale consortium april 3, 2019
TRANSCRIPT
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Project introduction
AN UPDATE ON MEXICO’S ENERGY SECTOR
EAGLE FORD SHALE CONSORTIUM
APRIL 3, 2019
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Briefing on Mexico’s Current Situation
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JULY 1ST, 2018MEXICAN GENERAL ELECTIONS
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THREE WORDS THAT DEFINE AMLO’S ADMINISTRATION
Power Nostalgia
Populism
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Power & Control
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Nostalgia
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TREN MAYA REFINERIA DOS BOCAS
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HELICOPTER ACCIDENT
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CRISIS OF REFINED
PRODUCTS IN MEXICO
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But what happened?
• December is traditionally a month with high-demand for fuels
• Inventories were extremely low
• Production of gasolines was low
• The country imported less
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150
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CRISIS OF REFINED PRODUCTS IN MEXICO“Huachicol”
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ENERGY REFORM
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Coordinadordel Sector de
Energía:Secretaría de
Energía
OrganosReguladoras
ComisiónNacional de
Hidrocarburos
ComisiónReguladora de
Energía
Operadores de Sistemas
Empresasproductivas del
Estado
Institutos de Investigación
Petróleo, Electricidad y Nuclear
Institutional Framework
Centro Nacional de Control de Gas
Natural
Centro Nacional de Control de la Energía Eléctrica
PEMEX CFE
Secretaría de Hacienda
Fondo Nacional del Petróleo
Agencia de Seguridadindustrial y
Medio Ambiente
PresupuestoY Finanzas 17
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ENERGY CABINET
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WHAT DOES AMLO WANTS IN ENERGY?
1. Achieve Energy Independence2. Achieve Energy Security3. Stronger PEMEX4. Stronger CFE5. Build Energy Infrastructure
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ENERGY SECURITY-A GRIMM PICTURE-
Oil and Gas: Declining Production
Refined Fuels:Importation at 80% rates of national
consumption
Poor Storage and Transportation infrastructure
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MEXICO: LARGE ENERGY MARKETS
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3425.021
1925.114
0
500
1000
1500
2000
2500
3000
3500
4000
Oil & Gas Production México 2005-2018
Fuente: CNH
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THE PRIVATE SECTOR IN THE MEXICAN UPSTREAM… MOVING SLOWLY BUT STEADILY.
HOWEVER THERE IS AN INTERRUPTION FOR OIL TENDERS AND REVISION OF CURRENT
CONTRACTS IN THREE YEARS
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NATURAL GAS MARKET
NATURAL GAS DEMAND HAS DOUBLED SINCE 2017
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FORECAST: NATURAL GAS CONSUMPTION
KEEPS GROWING
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Production of Gasoline 2013-2018
26
437Mbpd 422
Mbpd
381Mbpd
325Mbpd
257Mbpd
192Mbpd
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MEXICO NEEDS INVESTMENT IN OIL PRODUCTS
INFRASTRUCTURE
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New investments in the refined products infrastructure sector
Source: CRE
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ENERGY STRATEGY UNDER NEW ADMINISTRATION
• CONSTRUCTION OF A NEW REFINERY IN DOS BOCAS, TABASCO: AMLO has announced theconstruction of a new refinery with capacity of 320,000 BPD.
• REHABILITATION OF SIX REFINERIES: AMLO has announced the rehabilitation of six existent refineriesin Mexico that overall have been working at less than 30% of their original capacity
• STRATEGY TO REDUCE ILEGAL TAPING OF PIPELINES AND REFINED PRODUCTS: Mexico has seen anincrease in its rate of illegal taping of refined products, in January the country faced a shortage ofsupply of refined products throughout the country. The administration informed that the shortage wasa consequence of the strategy implemented to decrease the illegal tapping.
• STRENGHTENING OF PEMEX AND CFE (Comisión Federal de Eectricidad):• CAPITAL INFUSION• PEMEX PLANS FOR E&P• REVISION OF ALL CONTRACTS (ULTIMATUM)
• NO FRACKING
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…BUT PEMEX IS THE MOST INDEBTED OIL COMPANY IN THE WORLD
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…AND A SYSTEM OF CHECKS AND BALANCE IS ALREADY IN PLACE
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…ON THE GOOD SIDE, PERHAPS LESS AND SIMPLIFIED REGULATIONS
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Q & A
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TEXAS
18503 Sigma Rd., Ste. 200-50
San Antonio, Texas, 78258
MEXICO
Prol. Paseo de la Reforma 61-9 A
Paseo de las Lomas 01330
Del. Alvaro Obregon
CDMX
ADDRESS
P: (210)399-0824
C: (210)844-5921
Alejandra Bueno
www.energyrisolutions.com
PHONE & EMAIL