New Hydrocarbon Law Approved in SenateThu, 04/29/2021 - 20:33
With 68 votes in favor and 51 against, the Mexican senate has approved the reform of Article 13 of the Hydrocarbons Law originally passed in 2014, reports El Financiero. This follows the passing of this same reform in the Chamber of Deputies two weeks ago, reported by MBN. This change removes PEMEX from CRE’s regulation and control in regards to its pricing policies when selling fuel and other downstream oil products to its competitors. Opponents of the reform claimed that it would result in higher prices at the pump once PEMEX begins to increase its profits as a wholesaler. The reform will now be passed to the executive branch for its final signing and promulgation.
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“Contracts will be respected”: Nahle
SENER head Rocio Nahle promised that the Ministry would respect the 111 exploration and production contracts signed with private operators despite the ongoing legislative challenges to the legal framework that governs other segments of the oil and gas value chain, as she stated at AMEXHI’s 2021 National Oil & Gas Convention. The two day-event gave participants the opportunity to address the future of the industry’s private sector development.
“Hydrocarbon Law, An Obstacle for Mexico’s Economic Development”: IMCO
The Mexican Institute for Competitivity (IMCO) states that the new Hydrocarbon Law will have detrimental effects on the Mexican economy. "The Reform entails negative repercussions for families and the entire Mexican productive sector, whose access to basic energies such as gasoline, diesel and natural gas, among others, would be interrupted when moving production, processing, transportation, storage, sale, import or export of these inputs from the private sector to companies like PEMEX. Moreover, PEMEX’s financial statements show their serious operational and administrative inefficiencies," IMCO representatives explained.
“Fuel Imports Will Go Down To Zero”: AMLO
President López Obrador announced this week that his government wants to bring fuel imports down to zero. The President made the announcement during a tour of the Francisco I. Madero refinery in Ciudad Madero, Tamaulipas, the oldest refinery in Mexico and the one currently with the highest levels of productivity. This refinery, like all six existing refineries in Mexico, is undergoing extensive rehabilitation and modernization to cease all imports of oil products by 2023, according to the president. “Mexico will not be selling crude and buying fuel; we are going to process all available raw materials ourselves. That is why we are rehabilitating all refineries and building a new one in Dos Bocas, along with other projects to increase our capacity to process crude and stop all purchases of fuel, diesel and other oil products,” said the president.
National Production Recovers, Approaches Pre-Pandemic Levels
Mexico’s national production reached 1.698MMb/d in March of this year, which is considered remarkably close to the 1.747MMb/d reached in March of last year, immediately before pandemic measures and restrictions were enforced by Mexico's government. This also represents an increase of 1.9 percent when compared to February’s numbers. Ninety-seven percent of this production came from PEMEX. The lowest production levels during the pandemic so far were reached in July of last year, when national production hit 1.604MMb/d, when a part of this production decrease was agreed upon with OPEC in April and May of 2020.