Mexico reform opened the energy sector to foreign investment in 2013 for the first time in 75 years, but weak oil prices and politics continue to pressure the country’s energy industry, Dimitra DeFotis writes in barrons.com.
As for oil production in Mexico, it is at its lowest level since 1981. Production peaked in 2004, and has tumbled by a third to 2.49 million barrels per day from 3.82 MMbpd since, according to Raymond James analysts Pavel Molchanov, Luana Siegfried and Garrison Allen.
Raymond James held conference call last week with the director of investor relations at Petróleos Mexicanos (Pemex), the state-controlled oil producer, and compares the company to counterparts, which include Petroleo Brasileiro (PBR) in Brazil, YPF (YPF) in Argentina and Ecopetrol (EC) in Colombia. Their main takeaway: “Mexico is a prime example of a country where the theory of potentially lucrative drilling economics is running up against the reality of what the industry calls “above-ground” risk, i.e., complicated and uncertain government policy.” Here are more excerpts:
To read complete article click here.
more recommended stories
Through the implementation of AMLO’s austerity plan, the government could save 132 billion pesos in 2019
As wages for high government officials.
Japanese delegation comes to Mérida to strengthen bilateral relationship
The project of the Chicxulub crater.
First house entirely made of Sargassum built by Mexican inventor in Quintana Roo
PUERTO MORELOS, Q. Roo, September 20,.
Protests in Homun, Yucatan against the opening of mega pig farm
On Friday September 21, the conflict.
Day of the Dead Parade Mexico City, three years stunning the world
For the third year in a.
Viva Aerobus announces new direct flights between Cancun and the U.S.
Viva Aerobus, the ultra low cost.
Vessel control centers urgently needed in Quintana Roo
“A control center like the one.
Photographic festival coming to Mérida in November
For the first time, the Mérida.
Trump demands a border wall but many congressional Republicans just not into it
WASHINGTON DC – President Donald Trump.
Mexico analyzing U.S. proposal on deportation funding
MEXICO CITY (Reuters) – Mexico’s government.