Image credits: Kartikay Sharma, Unsplash
/
Weekly Roundups

Tech Use Grows as PEMEX Gas Production Dwindles

By Peter Appleby | Thu, 02/04/2021 - 18:13

Tech will play a larger role in oil and gas’ future, reckons Belden. Meanwhile, PEMEX refineries produced their lowest volume of gasoline since 1993 and Mexico City Mayor Claudia Sheinbaum pushes for greater regulation of LPG distributors after another explosion in the capital.

All this and more in the Week in Oil and Gas.

 

Pushing Tech into the Market

Mexico’s oil history is rich and as a producing nation, the country competes against major hubs around the world. However, lack of investment and of a proactive approach toward advanced technologies has seen Mexico’s oil power diminish. Companies like Belden, however, are stepping to the front to bring wireless industrial tech to Mexico’s industry. Involved in the 2010 update of the Tula Refinery, Belden is forging ahead with secure tech that delivers direct benefits to stakeholders across the value chain.

Manager of Application Engineering at Belden, Ricardo Velázquez, told us that though “Mexico is one of our biggest challenges” in terms of the “bearish perceptions among the main players in the region’s private sector in terms of investments,” the company is working with major stakeholders to increase tech’s role and deliver cost-saving, risk-reducing dividends.

 

PEMEX Refineries Hit Lowest Rates Since 1993

In 2020, PEMEX’s refinery production fell to levels not seen since 1993, according to El Economista. Average gasoline production fell to 185.6Mboe in 2020, a 9 percent drop compared to 2019. Despite this decrease, the overall volume of gas sold from PEMEX plants actually grew 4 percent in 2020 compared to 2019.

PEMEX sales fell drastically last year, especially during 2Q20 when the company reported a record quarterly loss of almost US$24 billion. PEMEX sales have fallen year-on-year since the reform of the retail sector permitted private brands to offer gasoline to consumers in Mexico. However, the capacity of the country’s refining system has also dropped markedly in recent years. The MORENA government has promised to heighten production capacity again and has already had some success, including the construction of the Dos Bocas refinery.

 

Sheinbaum Calls for Regulation of LPG Distributors

Mexico City Mayor Claudia Sheinbaum has called for more regulation of LPG distributors after a pipeline explosion caused by the refilling of an LPG tank just 50m from Mercado Jamaica injured eight people on Monday, reported El Sol de Mexico.

Sheinbaum said that a group should be set up to regulate distributors and LPG pipelines and recalled that in 2015, a similar explosion happened at the maternity hospital in Cuajimalpa where two babies were killed.

Peter Appleby Peter Appleby Journalist and Industry Analyst