The Week in Oil & Gas: CNH Announces New President CommissionerBy Cas Biekmann | Fri, 11/08/2019 - 16:14
CNH announced a new President Commissioner. Mexico’s private sector shows positive figures, yet it remains to be seen if it can fully capitalize on its success by convincing the government to grant new licensing rounds. In other news, recent acts of violence turned out to be just another brick in the wall that keeps Mexico from improving its sovereign ratings. Minor oil spills cause concern in Tabasco and PEMEX is set to improve on using its refining capacity.
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CNH’s New President Commissioner Announced: Rogelio Hernández Cázares
After Juan Carlos Zepeda stepped down, the show had to go on for CNH: Mexico’s Senate elected Hernández Cázares on Thursday. The Senate deemed Hernández Cázares born to run the CNH, after defeating other candidates like Carrizales López, former member of AMLO’s government, by a landslide.
Mexico’s Private Sector: On a Stairway to Heaven or With Reason to be Paranoid?
Private companies in Mexico are involved in 2.6 percent of the national crude oil production, showing potential to develop through further licensing rounds.
November is a crucial month for the private industry, as AMLO and AMEXHI are set to meet to revise the private sector’s progress. Potential new licensing rounds are on the table. AMEXHI will be able to show a good hand, with its ace of spades being the reached goal of 50Mb/e.
Talos Energy reports results bigger than expected: the operator in the Gulf of Mexico drilled two wells in the 3Q19, revealing a reservoir bigger than anticipated. While this is good news for Houston’s oil company, Talos still might struggle to retain control over the developments in Zama, as PEMEX might be interested in taking over.
PEMEX Amplifies Refining but Has Not Reached the Green Grass Yet
The NOC´s refineries processed more crude oil in October, reaching a 40.9 percent use of its facilities. This is a notable improvement over last year’s red numbers of 31.7 percent. However, to be in black numbers, these refineries need to reach 50 percent of their operating potential.
Concerns Over Mexico’s Sovereignty by S&P Foreshadow Issues in Rating
S&P said that recent acts of violence in the country will not have a negative effect toward a potential further downgrade. This is because S&P had already taken the factor of violence into account in previous ratings. However, Mexico will need to improve on safety issues to break free from a negative trend in ratings.
Beaches in Tabasco Closed Due to Oil Spill
Approximately 8km of beach in the Paraiso area of Tabasco have been closed due to oil washing ashore. Authorities are currently determining the source and cleaning up the damage.
Crude Oil Prices in Decline, OPEC Predicts Shrinking Market Share
OPEC argues that oil consumption will decrease in the future due to growing climate activism and a greater supply of other exporters combined with demand for American shale gas.
Crude oil prices dropped once again after news of a possible deal between the US and China evaporating and Chinese customs data showing that the country imported a record amount of crude oil in October.
A US agency is planning to invest US$632 million in a natural gas pipeline in southern Mexico. This project will be developed by Rassini.