Oil Price Crash Spells TroubleBy Cas Biekmann | Fri, 03/13/2020 - 11:26
This week, the oil market saw its biggest drop in value since the Gulf War. CFE opts to use natural gas for electricity generation in Bajo California Sur and Mexico Energy Forum was once again a success. Read more on this week’s roundup!
Oil Price Crash Sends Shockwaves Through Energy Sector
Oil prices had not dropped as steeply since the Gulf War in 1991. The fall was due to a disagreement between OPEC members and Russia, fueled also by the COVID-19 pandemic. Stock markets saw losses they had not seen in a long time after panic transactions.
Most affected, however, are oil companies. Stocks for ExxonMobil, Total, Petrobras and Shell, among others, have fallen more than 20 percent since the start of this year. Shell and BP alone saw US$40 billion evaporate from their market value.
Dark clouds are forming above Mexico’s PEMEX as well. The NOC is heavily indebted and ended 2019 ending with losses. A drop in oil prices means the company is inches away from another downgrade by major rating companies such as Fitch and Moody’s.
CFE Chooses Natural Gas over Fuels to Generate Electricity in Baja California Sur
CFEnergía published a call for tenders to supply natural gas to Baja California Sur. The goal is to generate electricity more efficiently, at a lower cost and in an environmentally friendly way.
Currently, the electric system of Baja California Sur is isolated from the national interconnected system, which forces the state to generate its own energy. By adopting gas, CFE hopes to generate higher amounts of energy with a more positive environmental impact.
Enel Green Power to Supply Renewable Energy to Heineken in Mexico
Enel signed a 10-year PPA with Heineken’s brewery in Meoqui, Chihuahua, committing to supply wind and solar energy. Heineken showed strong interest in renewables, wanting to source 66 percent of its energy from renewable sources. The brewer’s plan is to eventually reach a 100 percent in 2030.
Mexico Energy Forum 2020
On Wednesday, despite the COVID-19’s dampening effects on events in general, Mexico Energy Forum received industry leaders to discuss private auctions, solar energy development, renewable energy financing, CELs and the country’s energy policy. Read some of the articles here.
Solar Power Deal Formalized in Zacatecas
Canadian Solar has signed a PPA along with Techgen, with the goal of financing and building a 103MW solar power project in Zacatecas.