A Greener Oil and Gas Industry is Possible
The Mexican Petroleum Institute (IMP) detected several areas of opportunity to transform the oil industry into a greener one. Furthermore, the foreign direct investment (FDI) in the oil and gas sector fell by 63% during 1Q22.
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IMP Identifies Key Points for the Oil Industry’s Energy Transition
Florentino Murrieta Guevara, Director of Hydrocarbons Research and Transformation, the Mexican Petroleum Institute (IMP), discussed the need for the oil industry to adapt to the energy transition. Murrieta said that in 2022, 80% of the sources to produce power were fossil fuels, and only 10% came from renewable sources.
Vista Energy’s Production and 1P Resources Soar Outside of Mexico
Vista Energy announced that its 1P oil and gas reserves rose 39% year-over-year to 251.6MMboe as of December 31, 2022. The company added 87.8MMboe to its P1 reserves, achieving a reserve replacement rate of 495%. However, Vista’s Mexican asset only produced 1% of the output.
Oil Investments Stalled in 2022
Foreign Direct Investment (FDI) in the oil and gas sector fell by 63% during 1Q22 compared to the same period in 2021. While FDI in 1Q21 accounted for US$753.3 million, in 1Q22 it amounted to US$278.3 million, one of its lowest points since 2016. Inversely, FDI in the electric sector grew by 4% and reached US$623.5 million.
PEMEX to Invest in Gas Processing Centers
PEMEX Director General Octavio Romero Oropeza announced that the NOC is planning to enhance the gas industry through the increased capacity of humid gas processing plants. The state company is already carrying out construction works at processing centers in Tabasco and Chiapas.
CRE Highlights Low-Consumption Service Station Opportunities
Energy regulator CRE highlighted the viability of developing low-consumption gas stations for small towns and zones that are difficult to access. Low-consumption service stations only need two weeks to develop, they do not need as many gas pumps as traditional stations and the storage tanks do not have to be underground, so the required investment is lower. Nevertheless, the safety and operation requirements are the same
PEMEX Lags Behind Refining Targets
With the modernization of the six refineries already operating in the country and the prospect of getting the Dos Bocas-based Olmeca refinery operations, PEMEX was hoping to close 2022 with a crude processing amount of 1.2MMb/d of refined fuels. The NOC lowered its goal to 900Mb/d later in the year but did not manage to achieve its objectives.
Sempra, CFE and Carso Sign MOU to Build Natural Gas Pipeline
Sempra Infrastructure, CFE and Grupo Carso signed a memorandum of understanding (MOU) to build a natural gas pipeline in Sonora and Baja California, interconnecting Carso’s Samalayuca-Sásabe and Sempra’s and Sásabe-Guaymas pipelines.
Mexican Navy to Invest in Dos Bocas Infrastructure
The Mexican Navy (SEMAR) will invest MX$650 million (US$34.31 million) to further develop the military zone in Dos Bocas to protect the Olmeca Refinery and the Campeche Bank. The Dos Bocas Naval Sector was created in 2019. By 2022, SEMAR had invested MX$2.22 billion (US$117 million) to build housing, barracks for an infantry battalion, a naval hospital and other buildings for the workers.