Oil Price Goes Down Following Iran TalksThu, 10/28/2021 - 18:16
Oil prices have hit a two-week low after Iranian government announced that it will resume talks with global authorities to address its nuclear program by the end of November, reports Reuters. According to analysts, if Iran is successful in renegotiating its nuclear treaty and sanctions are correspondingly lifted, oil prices would continue to decrease as Iranian production enters the international market. This, coupled with rising US crude inventories, has now led to successive decreases in oil prices over the past couple of days.
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Operations at Tula Refinery and Dos Bocas Resumed
This month, strikes halted operations at Mexico’s Tula refinery in Hidalgo and stopped construction of the Dos Bocas project. Issues were resolved on Oct. 22 and Oct. 14, respectively. Tula was shut down for three weeks, which had significant implications for the energy sector. Issues at Dos Bocas were resolved in a mere two days. The Tula refinery was practically closed for weeks because of a rail and road blockade from protesting teachers. Issues at the construction of the government’s flagship US$8 billion Dos Bocas refining project began when workers of EPC firm ICA Fluor found issues in their collectively-bargained contracts.
Hidalgo State With Most Illegal Fuel Taps
Hidalgo has been identified as the state with the most clandestine fuel intakes. Meanwhile, Tepeapulco’s municipal president highlighted the importance of a Risk Atlas, without which municipalities are not prepared to deal with huachicoleo. “Unfortunately, we are the fifth municipality with the most clandestine intakes,” said Tepeapulco Municipal President Marisol Ortega López. She explained that Hidalgo is the state with the highest number of clandestine fuel intakes in the country. Hidalgo’s municipality Cuautepec has the highest number of identified clandestine outlets. PEMEX is undertaking the identification of all pipelines that run through the municipality “to be able to make them more secure, making it harder to drill through them,” added Ortega López.
Deer Park’s Key Team to Remain After PEMEX Takeover
PEMEX is looking to take control over Deer Park, a 340Mb/d refinery previously owned by Shell, by the end of 2021. Despite the takeover, existing leadership and emergency service arrangements will remain. Providing continuity in operations by transferring Deer Park Manager Guy Hackwell and his team to the PEMEX payroll could alleviate the community’s natural post-takeover concerns regarding the NOC’s safety record. Shell had previously announced that Hackwell would stay on to manage the refinery. Last week, Hackwell himself addressed concerns in a city council meeting by confirming he and his team are to become PEMEX employees “toward the back end” of 4Q21. How long the entire team will stay has not yet been clarified.
Mexico Reduces Southwest US Gas Imports to Favor Texas Pipelines
To favor the growing supply of Texas natural gas, the Mexican government has decreased natural gas imports coming from the US Southwest, as shown by pipeline data, starting in October. By way of the Samalayuca-Sasabe system, grid operators have more choices to reduce importers’ exposure to the US Southwest’s more volatile, costly gas pricing.