Schreiner Parker
Vice President of Latin America
Rystad Energy
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View from the Top

The Power of Knowledge

Thu, 04/12/2018 - 09:14

Q: What aspects drive your interest in Mexico and what is Rystad’s competitive edge in the industry?

A: Mexico is probably the most exciting place in the world right now for exploration. This is due to the country's timehonored tradition in oil production and its wells, which stand among some of the most prolific in the world. Mexico has vast virgin areas in the Gulf of Mexico where companies have always set their sights but where exploration was impossible because of the monopoly that PEMEX had. There are many commercial petroleum systems and an unquantified number of prizes lying in the Gulf, creating great excitement about the opportunities to develop E&P operations here. The industry’s opening to international investment was rocky to start but now that oil prices have stabilized the country has become quite attractive. 

For our part, we offer a mixture of consulting services and databases that serve as a primary source of information. We carry out our own research on upstream, reserves and production costs and we analyze the field-by-field basis and potential development. We cover 56 different segments for the oil and gas oil field service industry and we forecast the expected investment from each of those segments from an E&P standpoint.

We have a product to meet everyone’s needs, from the government to investment banks, investors, operators and even other consultancies. We strive to reach everyone involved in the oil and gas industry. Our priority is to demonstrate our research and consulting expertise and then identify the best fit for each industry segment. We want to be known as an entity that can facilitate knowledge transfer to these sectors.

Q: What is your assessment of data collection possibilities in Mexico?

A: It is certainly challenging but Mexico is not the most complicated place to obtain information. There has been a big push for transparency in Mexico and this has eased the flow of data into the market. Overall, governmental institutions have done a good job in making data transparent. Additionally, we develop communication channels with operators and oil field service companies to compile information. Hindrances to data collection are always present, particularly in places such as Latin America, but Mexico stands out as a relatively open place for data collection.

Q: To what extent has the Energy Reform changed the industry’s relationship with the government?

A: The reform has been unique in how it has been adaptive to criticism and feedback from the industry. Things have evolved organically thanks to this openness to apply the changes that players deem necessary for the industry’s future. Round Zero was the starting point and so it was the first opportunity to learn. The Mexican government has shown its willingness to listen to the industry’s advice and be receptive about the modifications that can attract investments. Mexico has become more investment-friendly and that is reflected in the growing number of players and companies bidding in the licensing rounds. 

Q: What technological introductions could have a significant impact if they were developed?

A: From an onshore and shallow-water perspective, enhanced oil recovery (EOR) is an area to develop. If we look at PEMEX’s portfolio, 40 percent of its total production comes from two assets: Ku-Maloob-Zaap and Cantarell. In the case of Cantarell, it has been in decline for several years, raising questions about the possibility of reversing this effect or stabilizing the asset’s production. There are similar concerns regarding onshore exploration in the Chicontepec region and whether there is some sort of applicable fracking that could potentially increase EOR in these reservoirs. I think this technology could help rework these reservoirs and understand what they look like, as there is a lack of information available from PEMEX. There is also the opportunity to develop unconventional resources, although this is a sector that will take several years to evolve. 
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