![]() ![]() In February 2021, for example, Mexico granted new fiscal support worth USD 3.5 billion to strengthen the oil company’s finances. The Mexican Government has repeatedly emphasized its efforts to strengthen Pemex. Following the publication of the revised Law in Mexico’s Official Gazette in early May, a federal judge granted a provisional suspension of the Law in response to multiple injunctions filed. Moreover, the Congress removed from the Energy Regulatory Commission (Comisión Reguladora de Energía or CRE) the power to enforce asymmetric regulation in the market, including the regulation of “Firsthand Sales” of Pemex products to competitors. In April 2021, the Mexican Congress modified the Hydrocarbons Law to give the Mexican Government broader powers to review and suspend existing import, commercialization, and distribution permits for all hydrocarbons. While the López Obrador Administration has indicated that it will respect the current legal framework of the energy reform, it has enacted a series of regulatory changes that have negatively impacted private sector participants, particularly in the midstream and downstream sector, to the benefit of parastatal Mexican Petroleum (Petróleos Mexicanos or Pemex). However, the López Obrador Administration, which has been skeptical of private investment in the energy sector, suspended pending upstream bid rounds upon taking power in December 2018 and has not announced plans to restart the auctions. In 2018 the Agency for Security, Energy and Environment (Agencia de Seguridad, Energía y Ambiente or ASEA) also completed their review of environmental permit and land rights applications. In addition to increasing the demand for technology and technical expertise for the development of upstream deep water and shale oil and gas fields, the energy reform also allows for greater private investment in retail fuel distribution.Īt the end of 2018, the Secretariat of Energy (Secretaría de Energía or SENER) completed the revision of the investment plans of the 107 contracts awarded during 2015–2018 to private companies. The reforms permit international energy companies to operate in Mexico and include provisions for competitive production sharing contracts and licenses. In December 2013, Mexico amended its constitution to allow both local and foreign private investment into the energy sector for the first time since its nationalization in 1938. Source: Secretariat of Economy, interviews and information from officials of Petróleos Mexicanos (Pemex), the Secretariat of Energy (SENER), and National Hydrocarbons Commission (CNH), ONEXPO, Mexican Natural Gas Association (AMGN), College of Petroleum Engineers, Mexican Petroleum Institute (PMI) contractors and importers. *Total market size = (total local production + imports) – exports ![]() Table: Mexico Upstream Oil and Gas Equipment and Services Market Overview companies as contractors, sub-contractors, or suppliers of equipment and/or technology. Significant oil reserves have been confirmed by major oil and gas companies operating in Mexico, and efforts to upgrade existing logistics infrastructure will likely drive private sector investment and provide opportunities for U.S. Earnings from this industry accounted for around 16 percent of total government revenues in 2021 according to PEMEX and the Secretariat of Treasure and Public Credit. Oil is a crucial component of Mexico’s economy. In 2021, the United States imported over 212 million barrels of Mexico’s heavy crude and exported over 1.6million barrels per day of refined petroleum products to Mexico (this represents more than 70 percent of Mexico’s domestic gasoline, diesel, natural gas, and jet fuel consumption). In 2021, Mexico ranked 12th globally in crude oil production, 21st in crude oil reserves, 16th in refined capacity, and 5th in logistics infrastructure. Mexico is one of the largest oil producers in the world (1.9 million barrels produced daily in 2021), and the fourth-largest in the Americas after the United States, Canada, and Brazil. This section includes a market overview for equipment and services and trade data for the sector. companies and service providers should target private sector companies in the market as well as Mexico’s government-owned petroleum company, PEMEX. exporters/manufacturers of equipment and service providers. The oil and gas industries are best prospect sectors that offer opportunities to U.S. Economic Development Organizations (EDO).Foreign Direct Investment Attraction Events.Facing a Foreign Trade AD/CVD or Safeguard Investigation?. ![]()
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