We are learning from Hydrocarbons Mexico that when one company, especially the NOC, dominates completely the industry, the news is all about them. In the light of Rubiales reversion to ECP last Friday, this week’s rant will be about increasing NOC-dominance and what it means for the industry.
With Energy Reform, many changes in Mexico’s oil sector are expected. As we mentioned a few days ago, one of the first changes was the inclusion of a foreign private company (Renaissance Oil Corp.) in hydrocarbons extraction in the country, after 78 years of a Pemex monopoly.
Andres Manuel López Obrador, National President of Morena (a political movement), led the mobilization in favor of the National Coordination of Education (CNTE) protests, last Saturday in Mexico City.
After a week in Mexico City and another week at the Global Petroleum Show in Calgary, Mexico’s ‘belle of the ball’ status is clear. But the government’s strong desire to see increased production through foreign investment does not mean social, or indeed environmental, conditions will be any easier.
According to El Financiero, Pedro Joaquín Coldwell, head of SENER, inaugurated the Mexican Oil Congress (CMP) 2016, which takes place in Cintermex Monterrey, Nuevo León, highlighting the Energy Reform role, whose main achievement has been Pemex´s modernization.
As part of the Energy Reform, the Secretary of Energy (SENER) issued guidelines and model contracts for the use, involvement or, where appropriate, acquisition of land, assets or rights for the exploration and extraction oil and transportation through pipelines.
Mexican Energy Reform so far is taking its first steps and is already beginning to generate controversial news. It has created the Mexican Oil Fund (FMP), which will be central to the new energy era in the country.