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Weekly Roundups

Mexico’s Refining Efforts Held up by Strikes

By Cas Biekmann | Thu, 10/14/2021 - 17:24

Unrelated issues with unions are holding back Mexico’s refining goals by affecting the construction of Dos Bocas and the output of Tula. In other news, the electricity reform would affect the oil and gas industry too. PEMEX plans its move to Campeche. Read the roundup here!

 

MEXICO

Strikes Affect Dos Bocas Construction, Refining Efforts

Striking employees of construction firm ICA Fluor have clashed with security forces at the construction site of the Dos Bocas refinery. News outlets report that workers demand higher pay and better labor conditions if they are to resume their work. President López Obrador has downplayed the importance of the strike, calling it a temporary issue and a “matter between unions."

At Tula, Mexico’s second-biggest refinery, operations have been idle since late September. Reuters reported that teachers have blocked roads used by PEMEX in protest of delayed salary payments and pensions.

 

PEMEX Prepares Move to Campeche

Campeche’s governor, Layda Sansores, held a meeting on Tuesday with President López Obrador. Following the meeting, Sanores said that she had discussed the transfer of PEMEX offices to Ciudad del Carmen, Campeche and that the infrastructure had been readied.

 

Proposed Electricity Reform Includes Oil & Gas Items

President López Obrador’s latest proposal for an “electricity reform” submitted to congress last Friday includes a number of impactful changes to the oil and gas sector. However, the president has made no mention of additional items contained within the text of the proposal that appear to address the public administration of the oil and gas industry.

 

CNH: A Brief Explanation

Given that the government’s latest electric reform proposal calls for the “suppression” of CNH, a basic understanding of its history and function is important to gauge what could be lost if said reform passes, a possibility that is becoming more likely than expected as the opposition parties have entered a state of conflict in response to the proposal.

 

Fuel Terminal Built to Service Valero Energy

MEXPLUS Puertos is set to invest US$200 million to construct Mexico´s most modern fuel terminal to service Valero Energy, the leading US refiner and one of the world’s largest fuel producers. This project promises a high-quality product in northern Mexico through a supply-led strategy against competitors’ brand-led approach.

 

Tampico’s Port Registers Cargo Recovery in August

The port of Tampico in Tamaulipas has registered a 13 percent cargo increase with respect to July this year, signaling a recovery in operations plus an increase in PEMEX’s activities in the area.

 

PEMEX Suppliers in Pandora Papers Underscore Corruption Issue

The owners of at least four major providers of Mexico’s national oil company PEMEX have appeared in the infamous Pandora Papers. Though their practices are not illegal per se, the issue has implications for the NOC as well as for the government’s anti-corruption platform.

 

 

INTERNATIONAL

US Oil Prices Skyrocket

Oil prices are rising fast, and for the first time in seven years, US oil is selling for more than US$80 a barrel. On Monday US benchmark oil is set “on fast track,” hitting the US$80 per barrel mark, as a result of the unfolding global-scale energy crisis, caused by the severe affectations to oil production in the Gulf, and skyrocketing demand for crude.

 

Shell Adjusts its Forecasts for 3Q21

Hurricane Ida’s toll on oil production in the Gulf of Mexico has pushed Shell to announce a hit to their 3Q21 numbers, with an estimated drop in production of 5 to 8 percent.

Photo by:   PEMEX Twitter
Cas Biekmann Cas Biekmann Journalist and Industry Analyst