eagle ford shale consortium april 3, 2019
TRANSCRIPT
Project introduction
AN UPDATE ON MEXICO’S ENERGY SECTOR
EAGLE FORD SHALE CONSORTIUM
APRIL 3, 2019
Briefing on Mexico’s Current Situation
JULY 1ST, 2018MEXICAN GENERAL ELECTIONS
THREE WORDS THAT DEFINE AMLO’S ADMINISTRATION
Power Nostalgia
Populism
Power & Control
Nostalgia
TREN MAYA REFINERIA DOS BOCAS
HELICOPTER ACCIDENT
CRISIS OF REFINED
PRODUCTS IN MEXICO
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
150
CRISIS OF REFINED PRODUCTS IN MEXICO“Huachicol”
ENERGY REFORM
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
ENERGY CABINET
WHAT DOES AMLO WANTS IN ENERGY?
1. Achieve Energy Independence2. Achieve Energy Security3. Stronger PEMEX4. Stronger CFE5. Build Energy Infrastructure
ENERGY SECURITY-A GRIMM PICTURE-
Oil and Gas: Declining Production
Refined Fuels:Importation at 80% rates of national
consumption
Poor Storage and Transportation infrastructure
MEXICO: LARGE ENERGY MARKETS
3425.021
1925.114
0
500
1000
1500
2000
2500
3000
3500
4000
Oil & Gas Production México 2005-2018
Fuente: CNH
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
NATURAL GAS MARKET
NATURAL GAS DEMAND HAS DOUBLED SINCE 2017
FORECAST: NATURAL GAS CONSUMPTION
KEEPS GROWING
Production of Gasoline 2013-2018
26
437Mbpd 422
Mbpd
381Mbpd
325Mbpd
257Mbpd
192Mbpd
MEXICO NEEDS INVESTMENT IN OIL PRODUCTS
INFRASTRUCTURE
New investments in the refined products infrastructure sector
Source: CRE
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
…BUT PEMEX IS THE MOST INDEBTED OIL COMPANY IN THE WORLD
…AND A SYSTEM OF CHECKS AND BALANCE IS ALREADY IN PLACE
…ON THE GOOD SIDE, PERHAPS LESS AND SIMPLIFIED REGULATIONS
Q & A
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