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
Truck carrying fuel explodes in Tabasco
The explosion of a truck (pipe).
Woman reported missing in Merida is safe and back with her family
MÉRIDA, YUCATAN (September 28, 2020).- Cecilia.
“Lord Pizza” man who refused to wear face mask beats up worker at pizza place (VIDEO)
We must all do our part.
AMLO’s long-standing aversion to public spending undermines his popularity
In early July, as Mexico’s tally.
Presidential debate 2020: Watch Trump vs. Biden debate live tonight
Donald Trump and Joe Biden will.
Mexico shuts down “Puente Grande” maximum security prison
MEXICO CITY (AP) — Mexico announced.
Mexico demands the US for answers on alleged migrant hysterectomies
A whistleblower claimed earlier this month.
Mexico launches special guard force to protect mining companies from drug cartels
Mexico is now deploying guards equipped with assault.
Cold front No. 4 is heading to the Yucatan Peninsula
Cold front No. 4, which today.
AMLO hopes to raise 50 billion pesos with the extinction of trusts
President Andrés Manuel López Obrador assured.