Enabling Change in the Mexican MarketWed, 01/18/2017 - 15:41
Q: How important is the oil and gas market for Dow?
RO: Oil and gas is a strategic market for Dow and we expect it to remain a growing platform for us. Dow has 178 a comprehensive portfolio for the oil and gas chain, with solutions ranging from exploration, production, refining and processing, to fuel conversion processes. The company is heavily investing to bring new technologies to the shale and deepwater markets, which are strategic not only for Mexico but for Latin America overall. We produce an important proportion of the products and technologies in the region and have technical support teams in each country. They know the companies in depth and can offer solutions with greater assertiveness. Dow works with the entire value chain to bring the best solutions to Mexico’s specific challenges, both with national players like PEMEX or international companies, contributing to improving oil and gas operations and participating in critical activities that directly impact results.
For Latin America we have a strong focus on solutions that increase productivity of shale gas and oil, for example by cleaning the hydrogen sulphide (H2S) out of the shale gas or introducing biocides to control micro-organisms that would otherwise affect E&P activities, the transportation of the fluid and even the quality of the extracted product. Another set of products that we are introducing in Mexico, and that were developed specifically for Brazil and its deepwater infrastructure, is our range of technologies for flow control in pipelines, which comes at a perfect time now that the deepwater industry is starting to develop in Mexico.
JB: Opportunities have really increased dramatically. Diversification of the economy is a key pillar for the authorities and for private industry in Mexico. The Energy Reform allowed the diversification process to start in upstream oil and gas, especially with deepwater and shale, and technology will be a key enabler to make this opportunity a reality.
As for the rest of the value chain, the Energy Reform is dramatically increasing opportunities because the needs in infrastructure, the transportation of key molecules across the chain and the required upgrades in manufacturing capabilities are real and we strongly believe Dow has the portfolio of products and technologies to cater to those needs.
Dow’s ultimate goal is to create a strong industry in Mexico. It will not happen overnight, it will need a transition period, but we are happy and excited about the opportunities. We are stewards of the entire value chain. We not only want to participate as a player in the market but also act as the bonding factor that brings together all the key players in the value chain to discuss and create, under the umbrella of our innovation and sustainability pillars, the solutions demanded now and in the future.
Q: How is Dow working toward the implementation of better technologies in Mexico?
RO: Each country in Latin America has specific features and needs. In Brazil, we know that there is strong demand for deepwater projects. All operations were scheduled to start but due to the political crisis those were postponed. Even so, they already have the FPSOs and operations will most probably begin in 2020 once the environment is stable. Dow is ready to work in Brazil as a provider because our products are proven. Argentina, on the other hand, is a strong market for our biocide products used in gas E&P.
Thanks to our involvement in both markets we can bring cutting-edge proven technologies to the Mexican market once activities start ramping up. Our strategy for technology implementation in Mexico is to approach the operators, prove our technologies and then move back in the value chain to offer these technologies to service companies. Our local presence is an added value, as we are ready to meet all demands and develop tailor-made solutions for each challenge.