Oil and Gas Strategy Must Address Operational Hurdle

Q: How does Alliance view the government’s strategy for achieving fuel self-sufficiency, and what do you see as PEMEX’s main challenges to reach its goal?

A: Fuel self-sufficiency has been a goal for the last two administrations and is framed as a key strategy for the country. While it makes sense at an executive level, it presents key challenges at the operational level, particularly in infrastructure, sustainability, and reliance on external factors. The biggest challenge is ensuring a cohesive strategy that integrates these areas while positioning Mexico consistently within the international context.          

Q: Considering the budget overruns and delays of the Dos Bocas project, what lessons should be learned for future oil and gas projects in Mexico?

A: A key takeaway is the ability of Mexicans to unite behind a shared vision and execute it. The operational challenge lies in defining and adhering to project structures. The new leadership recognizes the need for deeper analysis, as seen with the recently launched Plan México. While lessons are being learned, greater certainty is still needed for international investors, particularly regarding how external factors affect the operational vision and the critical infrastructure needed to ensure financial viability.     

Q: What is the central issue in the relationship between PEMEX and SENER with key stakeholders and suppliers in the oil and gas sector?

A: PEMEX is not engaging sufficiently with key stakeholders, including small companies in the sector. While SENER has held meetings with ENGIE, Iberdrola, and others, the fundamental question remains unanswered: When will PEMEX pay? This financial uncertainty affects the relationship with suppliers and the production process in the sector. Once this is clarified, PEMEX's operational boundaries can be defined.

Q: How can PEMEX and private companies exchange knowledge for future projects?

A: PEMEX will lead future projects, but it faces challenges in providing timely information to set operational and strategic parameters. While PEMEX has the capability to fulfill projects, the real challenge is securing political visibility and financial capacity to support large-scale ventures. The ongoing issue of integration and clarity on secondary laws will determine the level of private investment and legal certainty PEMEX can offer. The most interesting aspect is seeing how these laws are approved and implemented within the political system, and how they are integrated into PEMEX’s operations.     

Q: How does Alliance approach leadership and investment in the sector?  

A: We emphasize leadership through media and consulting, while also recognizing investors and entrepreneurs who challenge the status quo despite ongoing uncertainty. Mexico presents two      key opportunities. First, US policies accelerating the oil and gas industry align with PEMEX and CFE’s national energy vision. Second, Mexico has the potential to become a transnational infrastructure hub for renewables. Despite challenges, Mexico remains the gateway to Latin America’s energy transition.

We focus on aligning leadership with the national energy agenda. While I consider myself a nationalist, this does not mean disregarding technical expertise. Effective integration requires understanding that politics shape the landscape but do not dictate technical necessities. We have embraced change, rather than resisting it, leveraging innovation as a key driver to foster collaboration with PEMEX and the public sector.

Q: How do ESG concerns and governance fit into this evolving landscape?

A: Environmental considerations must be viewed through a sustainability lens. China’s 2030 carbon peak announcement serves as a stark reminder of the intersection between industrial growth and environmental policy, even ahead of the United States. Mexico has historically neglected reinvestment in infrastructure, but aligning with sustainability is now critical for competitiveness and governance.

Governance involves transparency, policy development, and fostering open dialogue between the private sector and government. Creating spaces for industry leaders to exchange insights is essential. Mexico's greatest challenge is defining a unified vision for sustainability, particularly as the United States aligns its policies with China’s industrial strategy.

Q: What is the immediate priority for oil and gas industry leaders?

A: Action. The market presents significant opportunities, particularly with PEMEX’s payment schedules stabilizing and sustainability becoming a clear priority. The geopolitical landscape remains complex; Trump’s previous term focused on border policies, and future tensions are likely. However, Mexico must stay proactive rather than reactive. With Sheinbaum’s administration standing firm on policy, industry leaders must seize opportunities, drive innovation, and ensure the sector remains dynamic amid global shifts.

Oil and Gas Alliance specializes in fostering collaboration and driving innovation across the oil and gas industry. The alliance brings together key stakeholders, including industry leaders, government officials, and technical experts, to address critical challenges and opportunities within the sector.