Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you a link to reset your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

Mexico's major oil find could strangle foreign investment for years: analyst

Electricity | Coal | Electric Power | Oil | Crude Oil | Refined Products | Gasoline | Coronavirus

Market Movers Americas, Oct 19-23: US midstream watching election runup, COVID resurgence threatens gasoline demand

Oil

Platts Market Data – Oil

NGL | Oil | Crude Oil | LPG | Oil Risk | Petrochemicals

Platts University New York

Electricity | Electric Power | Nuclear | Natural Gas

US, Poland reach nuclear technology deal to loosen Russian pipeline gas grip

Mexico's major oil find could strangle foreign investment for years: analyst

Highlights

Pemex aims for 69,000 b/d from new field by 2020

Wood says discovery plays into Lopez Obrador's insular shift

IEnova sees great need for energy infrastructure in Mexico

Washington — Pemex's massive new oil discovery at the Quesqui field might paradoxically prove to be the worst news of 2019 for Mexico's energy sector, as it will be used to justify a shunning of badly needed private investment for years to come, veteran Mexico energy watcher Duncan Wood said Wednesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The onshore find, announced Friday, in the southeastern Tabasco state holds 3P reserve potential of 500 million barrels, according to state-run Pemex, which plans to drill 11 new wells with total production of 69,000 b/d next year.

Wood, director of the Wilson Center's Mexico Institute, said the Pemex discovery allows President Andres Manuel Lopez Obrador to dig in on his campaign promise to make the country self-sufficient in energy, with Pemex meeting rapidly rising energy needs.

Lopez Obrador's views "have been confirmed in his own head that Mexico doesn't need foreign capital, it doesn't need foreign technology," Wood added. "I think that's a very powerful factor in determining how the investment climate is going to go, moving ahead."

Wood said he doubts "very much" that Pemex can achieve the 69,000 b/d output target next year.

"If Pemex is able to at least hold the line on production, if [state-owned utility] CFE is able to provide electricity at least for public service, I think they will limp through this administration and there will be a very strangulated investment climate," Wood said at an event co-hosted by the Institute of the Americas and the Inter-American Dialogue.

INFRASTRUCTURE NEEDS

Nelly Molina, CFO of Mexican utility IEnova owned by Sempra Energy, said at the same event that the country's energy sector needs massive private investment and new infrastructure.

She said next year's federal budget will be maxed out by the administration's priorities around building the 340,000 b/d Dos Bocas refinery and rehabilitating existing refining capacity.

"There's nothing, absolutely, for these other type of segments," she said, referring to natural gas, electricity and renewable projects.

On Pemex's persistent problem of fuel theft, Wood said Lopez Obrador appears to have cracked down on corruption and managed to reduce the biggest fuel heists. But Wood said the number of smaller thefts appears to have increased.

"They've sorted out some of the major thefts that were coming straight out of the refineries," Wood said, adding that Lopez Obrador appears "quite serious about trying to root out corruption within Pemex."

"These are people who have been there for a long time, and he wants to make sure they're no longer benefiting from and damaging what he sees as the jewel in the crown, which is Pemex. That's a success. It's not a complete success, but it is a success."

-- Meghan Gordon, meghan.gordon@spglobal.com

-- Edited by Manish Parashar, newsdesk@spglobal.com