Expert Industry Views; Farmouts Back on the TableBy Peter Appleby | Thu, 11/05/2020 - 17:59
Last week’s Mexico Oil & Gas Summit 2020 offered expert insights on matters that will affect the industry in years to come. Among them was the future of deepwater exploration and farmouts, which Energy Minister Rocío Nahle says the government is once again open to. Meanwhile, the US presidential election had an impact on oil markets.
All this and more in The Week in Oil & Gas!
Mexico Oil & Gas Summit’s First Online Edition a Rotund Success
Last week, Mexico Oil & Gas Summit 2020 moved online and proved a wild success, with over 465 conference participants that had the opportunity to hear from the 44 industry-leading speakers.
José Antonio de la Vega, Minister for Energy Development for the State of Tabasco, kicked off Day 1 of the event, explaining his vision on the state’s role in Mexico’s pursuit of energy sovereignty.
A presentation from Carmine De Lorenzo, Managing Director of Eni Mexico, and Francesco Luigi Peselli, General Director of Mizamtec at Eni Mexico, offered an inside view into Eni’s success on Area 1, while Loren Long, Vice President–Mexico at Talos Energy and Andres Brügmann, Country Manager of Fieldwood Energy, shared the goals of each shallow water operator for the coming year.
Other panels covered topics that included the supply chain and human resources, as well as operation excellence from onshore operators.
Day 2’s packed schedule saw a range of topics presented. Luz María Gutiérrez, CEO of G500 and Roberto Díaz de León, President of ONEXPO, were among those discussing the future of retail. The development of Mexico’s deepwater opportunities were explained by Bud McGuire, COO at Alpha Deepwater Services (ADS Consultoría Petrolera), and others, while Merlin Cochran, Director General of AMEXHI, talked about the successes that private companies have had despite the challenges of the last eight months.
With SENER and PEMEX changing their approach to the NOC’s involvement in deepwater possibilities, Energy Minister Rocío Nahle said that she would not rule out farmouts should PEMEX need investment.
Farmouts had been taken off the table early into the government’s administration after private companies had been accused of not developing fields quickly enough. However, with deepwater fields becoming more attractive to PEMEX, farmouts will likely be required to generate the capital necessary and give the NOC, a traditionally shallow water and onshore-focused company, more experience.
For more views on PEMEX’s deepwater potentials and the future of farmouts, see our rundown of Mexico Oil & Gas Summit 2020 deepwater panel here.
Though the US presidential race is still not over, oil markets reacted positively to a tweet from US President Donald Trump on Wednesday, when he claimed falsely to have won the election before counting had ended. Prices jumped 3 percent on the back of Trump’s tweet, which was followed by a series of other speculative opinions that have been flagged by the platform for being disputed or misleading.
WTI rose US$1.45 to US$39.15 per barrel while Brent jumped US$1.52 to US$41.24 per barrel. A Trump victory would be welcomed by the fossil fuel industry, which looks upon Biden’s promise to promote green energies with concern. The US president spearheaded the US’ exit from the Paris Agreement and has been a proponent of the US’ struggling coal industry.