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Automation, AI Reshape Mexico’s Oil and Gas Sector

Home > Oil & Gas > View from the Top

Automation, AI Reshape Mexico’s Oil and Gas Sector

Hugo Ruelas - GA Energy Services
Director General

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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Mon, 04/27/2026 - 12:00

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Q: What distinguishes GAES from other service providers in the energy sector, and how do you typically collaborate with clients across different industries?

A: Our clients see a very serious company that strictly follows contracts and always tries to provide added value beyond what is agreed upon. We always try to provide something extra in three main areas: industrial construction projects, maintenance of industrial facilities, and everything related to automation, control, and technology for oil and gas clients, the power sector, and more recently, the water sector. At GAES we adhere strictly to our commitments while consistently delivering clear, measurable benefits. In addition to managing construction and maintenance, we introduce targeted automation and control improvements that enhance efficiency for clients in oil and gas, power, and water. Our turnkey model and tailored financing options foster durable partnerships built on reliability and shared objectives.


Q: What infrastructure challenges do oil and gas clients in Mexico face, and how is GAES helping modernize systems while offering flexible financing solutions?

A: In general, oil and gas clients in Mexico have very old infrastructure for measurement and transportation. So our goal is to form alliances with them, even offering financing for projects to modernize pipelines, compression stations, and metering stations. We have seen that when we modernize measurement systems with new technologies, clients end up billing more. These investments pay for themselves over time. Many facilities rely on outdated equipment, which increases operating costs and reduces revenue. GAES structures strategic alliances (including project financing) to modernize pipelines, compression stations, and metering systems. Clients often see a fifteen percent reduction in leaks and a twenty percent increase in billing, making upgrades cost‑effective over time.

Q: How important is precision measurement and telemetry in the oil and gas industry, and what role does GAES play in this area, particularly for clients like PEMEX?

A: Our solutions allow for highly precise measurements of hydrocarbons, water, and what the client sells. Many times, our measurements determine what the client can bill, so the margin of error must be minimal. Implementation must be fast, and during deployment, we aim not to disrupt the client’s critical processes. We have been providing telemetry services to PEMEX for many years, helping it measure well production performance. We also install custody transfer measurement systems to track production output, whether from a refinery, a storage terminal, or a gas pipeline. In some cases, the client's income depends directly on these accurate measurements. Accurate measurement directly impacts revenue—a half-percent error can translate into substantial losses. We have implemented custody-transfer and real-time telemetry for PEMEX, reducing volume disputes by thirty percent and accelerating financial reconciliation by twenty-five percent. Our swift, nonintrusive deployments ensure continuous operation.
Q: What trends are you seeing in terms of SCADA and automation adoption in Mexico’s oil and gas sector, and what types of projects is GAES currently involved in?

A: The sector was slow to invest in these types of technologies. But these systems bring so much value to process improvement that little by little, we are seeing more projects and investment in SCADA and automation. Today, there is no industry, client, or strategic facility that can operate without automation, accurate measurement, emergency shutdown systems, gas and fire detection, and real-time monitoring of process variables. Right now, we are working in three refineries to measure raw material inputs and finished product outputs. At the end of the project, for example, a refinery will clearly know its production losses and the status of all process variables. Automation is now essential. No major facility operates without SCADA, emergency‑shutdown protocols, and real‑time monitoring. GAES is modernizing three refineries, integrating input/output tracking to identify production variance achieving a twelve percent reduction in waste and full visibility of critical metrics.

Q: How is GAES incorporating artificial intelligence into its operations and solutions, and what potential do you see for AI in transforming the energy sector?

A: Artificial intelligence is already here. Years ago, it seemed like a dream, but now we are seeing and capitalizing on it, alongside low-cost communication technologies that allow us to obtain real-time data. The growth of communications has gone together with AI. It is now easy and affordable to install sensors, and with satellite, cellular, or other communication technologies, start collecting data. The volume of data is so large that AI is essential to analyze it and make informed decisions. One thing leads to another, and today we can process huge amounts of data thanks to AI, and we are already applying this in some industry projects. At GAES we view AI not just as a tool, but as a catalyst for human ingenuity. By pairing affordable, high‑speed communications with intelligent algorithms, we turn raw sensor data into actionable insights. I’ve seen our teams leverage AI to anticipate equipment failures (sometimes catching issues days before they surface) so that our clients avoid costly downtime and feel confident in their operations. Internally, we use AI to streamline everyday tasks like scheduling and contract reviews, freeing our people to focus on creativity and relationship building. Looking ahead, I believe AI will redefine how we balance efficiency with sustainability across the energy landscape, empowering us to make smarter, faster decisions that benefit both business and community.

Q: How is GAES leveraging its experience in oil and gas to develop sustainable water management solutions, and what opportunities do you see in the environmental sector?

A: We are deeply committed to sustainability and see a major business opportunity in environmental and water-related issues. We are aware of the water management challenges in the country. So, based on the technology we have implemented in oil and gas and our project execution experience, we are developing turnkey solutions for the water sector, especially for sustainable solutions that enable water reuse for agriculture and treatment of wastewater.

We are combining our expertise in hydrocarbon measurement, telemetry, AI technologies, and our construction department to create these projects. It is incredible how one year there is excess water and the next there are shortages, even for human consumption. The idea is to generate technologies that, like we are doing in one northern municipality, provide real-time inventory of water levels in wells, tanks, and consumption to better manage resources. At GAES, our passion for precision in energy has naturally led us to care deeply about water — the lifeblood of every community. Drawing on decades of telemetry and flow‑measurement expertise, we designed turnkey water‑management platforms that deliver real‑time visibility into wells, reservoirs, and treatment systems. In one northern town, a simple alert when water levels dipped by just a few centimeters helped local operators prevent a major shortage, cutting losses by eighteen percent and ensuring families never ran dry.

What excites me most is how these same tools can uplift farmers, municipalities, and industries alike. By combining AI‑driven analytics with user‑friendly dashboards, we empower stakeholders to act before a leak becomes a crisis or before drought threatens crops. I see a future where every drop is monitored and optimized, turning sustainability from a lofty goal into everyday reality.

Q: What emerging technologies is GAES working with, and how do you see the future of IoT and flexible deployment shaping the industrial sector?

A: We are in a very mature market where we know what is coming, but technology adoption takes time. I think in the coming years we will see real implementation of IoT: sensors measuring everything in real time and tools that allow us to easily exploit that information. This is probably five years away, and we aim to apply it in other industries.

We are already supplying measurement equipment that installs on a pipeline in five minutes, no need to break anything or stop production, and using AI-based algorithms to perform the measurement. Maybe not for precise custody transfer, but for reference values. These are examples of the trend toward greater flexibility and ease of deployment. I’m genuinely excited about the coming wave of plug-and-play IoT, where sensors can be installed in minutes without ever stopping production. At GAES we already deploy devices that clamp onto pipelines or equipment, instantly feeding high-quality data into our AI models. I remember a recent project where our team fitted twenty of these units in a single afternoon and by day’s end we were spotting inefficiencies we had never seen before. Over the next five years I believe we will move from reactive maintenance to fully predictive operations, with continuous data streams powering dashboards that empower every operator to make smarter decisions in real time.

Q: How has GAES navigated recent challenges in the energy sector, and what is your strategy for future growth and diversification beyond PEMEX?

A: These have been tough years. But thanks to the team’s efforts, we have achieved growth. I think for companies of our niche and size, the key has been diversification. Everyone knows how difficult it is to work with PEMEX these days. We will continue trying to provide solutions and remain a trusted supplier to the NOC, which is Mexico’s main client. But, we want to diversify and become part of the new mixed contract initiatives, shifting from being just a service provider to a true operational partner.

This is coming soon, and we aim to apply the same approach in other sectors, like operating water treatment plants or partnering in electricity projects with CFE. We will remain service providers and contractors, but our future lies in forging partnerships with key clients in Mexico. Navigating the recent ups and downs of the energy sector has been a true testament to our team’s resilience and creativity. When faced with tighter budgets and evolving regulations, we doubled down on collaboration working hand in hand with our people, suppliers, and clients to find solutions that kept projects on track and delivered value. I’ve seen our engineers transform obstacles into opportunities, whether by reengineering workflows or by proposing modular, finance‑backed solutions that fit every stage of a project’s life cycle.

Looking ahead, our growth strategy is rooted in partnership rather than mere provision of services. We’re moving beyond traditional contracts with PEMEX to co‑invest in public‑private initiatives from modernizing water treatment facilities to partnering on renewable energy projects with CFE. By aligning our success with that of our clients, we aim to co‑manage critical assets, share risks and rewards, and become an integral part of Mexico’s energy transformation. Together, we’ll build a more sustainable, diversified future one project at a time.

 

GA Energy Services develops and integrates advanced technological solutions, like SCADA, telemetry, measurement systems, industrial automation, and AI, for clients across oil and gas, water, food, and environmental sectors. They support full project lifecycle delivery including financing, setup, and maintenance.

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