Refining Requires Coordination Between Downstream, Upstream

Q: Which sector in Mexico has shown more demand for your products, upstream or downstream? 

A: In Mexico, we focus on downstream and our products have been well received by this sector. We are a well-known company worldwide, probably the most recognized in pressure and temperature instruments. It has been easy for us to enter the Mexican market, and PEMEX’s refining and petrochemical areas also know us well. The country has made significant investments in downstream projects over the past six years. Projects such as the Dos Bocas refinery, the Tula refinery, and the Salina Cruz refinery have contributed significantly to our growth. The upstream sector, on the other hand, has slowed down.

Q: How will the slow down in upstream operations affect the country?

A: There have been few investments in production, so Mexico will need to import crude oil to have enough raw material to meet the refining capacity that the country wants to build. The country needs to invest in platforms. Continuing to import barrels of oil keeps the country dependent on foreigners and international prices.

PEMEX is also inefficient so extraction and refining are both expensive. The inefficiency is caused by many problems including unions, bureaucracy, government decisions, and corruption. There is significant potential in upstream projects. Between 2007 and 2015, the country built about 40 platforms of all sizes for production and extraction. Those projects stopped because this administration focused on downstream.

Q: What challenges have you faced when bringing a plant to Mexico and how has it benefited you?

A: Ashcroft opened a maquiladora plant in Queretaro in 2022, partly due to the benefits the country offers that are driving nearshoring. Mexico has clear laws and a well-formed regulatory framework, which will continue to drive nearshoring. Although there is room for improvement, the country is competitive. Mexico also has a competitive and qualified workforce, which can be seen in many sectors, such as construction, automotive, and pharmaceutical. 

Q: How has Ashcroft remained attractive to younger generations in a sector as traditional as oil and gas?

A: Young generations are very proactive and it is great to work with them. Many people with years of experience are leaving, or retiring, and young people are entering the sector. The way of working is changing. Young people investigate more. People with a lot of experience assume many things, but young people always think of other options.

Q: What are your expectations for the oil and gas industry in the coming years?

A: The Dos Bocas refinery will need to be completed, as will the Tula and Salina Cruz refineries. Mexico still lacks the infrastructure for EVs, so the downstream sector will continue to be relevant. But the refineries will also need investment for platforms and other upstream projects. 

Q: What are Ashcroft’s plans for this and next year?

A: We want to continue growing, consolidating the brand and the company. Our objective for next year is to complete our existing projects and maintain our participation in the oil and gas market, which is especially important for us. 

Our customers have placed their trust in our products over so many years and we will not let them down. We always seek to improve.

Ashcroft, founded in 1982, is a global leader in temperature and pressure instrumentation. It manufactures a broad range of solutions for critical industrial processes.