Energy & Utilities
From The Report: Mexico 2018
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As several important segments of the country’s energy industry open up for competition, widespread energy reform is leading to significant changes that go well beyond the sector. New investments and private operators are helping to change the economic structure of the country, in a sector often highlighted for its significant potential. The energy sector is well positioned to receive additional private investment and technical know-how for its future development, but for ongoing reforms to be successful in the long term, continuity of the regulatory framework will be an essential component. This chapter includes interviews with Carlos Treviño Medina, CEO, Petróleos Mexicanos (Pemex); Ivan Sandrea Silva, CEO, Sierra Oil and Gas; and Miguel Ángel Alonso Rubio, CEO, Acciona Energy.

Articles from this Chapter

Overview

Steady ahead: Regulatory overhaul helps to inject private investment in a range of sector activities
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With the impact of reform permeating all corners of the energy sector, Mexico’s economy is undergoing a rapid transformation. The extensive regulatory changes that began in December 2013 are helping to attract large volumes of foreign and domestic investment into hydrocarbons exploration, downstream fuel distribution and renewable energy generation. Private oil and gas producers, virtually barred from operating freely in the country since the nationalisation of Mexico’s hydrocarbons industry…

Analysis

Fuel for competition: International and domestic brands battle for market share in the downstream segment
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With the majority of investments coming into the sector through the energy reform, and with the results of this expected to manifest in the medium term, one segment of the market is already seeing an unprecedented level of change. Liberalisation in the downstream petroleum distribution market, part of the ongoing reforms to the energy sector launched in December 2013, has attracted international and domestic operators, and is changing the face of Mexico’s petroleum products retail network. Out…

Interview

Dig deep: Carlos Treviño Medina, CEO, Petróleos Mexicanos (Pemex), on new discoveries and the importance of collaboration
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Interview :Carlos Treviño Medina How is Pemex adapting to the new energy reform? CARLOS TREVIÑO: The energy reform has initiated a profound transformation of the legal and institutional framework of the Mexican energy sector as it seeks to promote the sustainable and efficient use of our natural resources to ignite the sector’s potential and contribute to the country’s overall development. As mandated by our business plan, Pemex is concentrating its efforts in businesses that will result…

Analysis

From resources to riches: Exploration efforts tap into a number of new deposits
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With the reshaping of the energy sector opening up the industry to new investment, anticipation around how the reform will expand Mexico’s hydrocarbons reserves and push production upwards has been building. So far, important oil and gas discoveries – both by major oil firms as well the state-owned firm Petróleos Mexicanos (Pemex) – has already brought optimism to the sector. As opposed to downstream activities, where a flurry of fresh entrants is bringing quick change, the restructuring of…

Interview

Extracting results: Iván Sandrea Silva, CEO, Sierra Oil and Gas, on the benefits of reforming the sector
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Interview :Iván Sandrea Silva To what extent has energy reform positively impacted levels of oil and gas investment? IVÁNSANDREA: Reforms take time to materialise, especially in the energy sector, where progress is slow. However, Mexico has achieved tremendous results in the last two years. There are more than 70 companies active and registered in the country, there have been over 100 blocks awarded, there are new exploration areas and, above all, the best news is that private operators…

Interview

Clean sweep: Miguel Ángel Alonso Rubio, CEO, Acciona Energy, on reform to encourage renewables and rural development
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Interview :Miguel Ángel Alonso Rubio How will the second electricity auction lead to increased efficiency in the renewables sector? ALONSO: The results of the first electricity auction were key to the success of the second auction, boosting confidence in the mechanisms that the government had put in place for energy reform. The latest auction increased companies’ desire for electricity projects, making them feel more secure and confident. As a result, much more competitive prices were…

Analysis

Green and clean: Changes to the regulatory framework are attracting private financing and reducing prices
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Besides opening up the market for private participation in the hydrocarbons sector, Mexico’s fast-moving energy reform is also strengthening the use of renewable energy sources within the country’s electricity grid. Although the use of renewables has experienced an organic expansion over the years, new market-driven mechanisms, combined with rising domestic and international interest from investors, are helping to re-equilibriate the weight of clean energy generation within the country’s overall…

Analysis

Waste not, want not: Importance of more sustainable water-management policies amid increasing agricultural trade and industrial activity
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Mexico receives 1.49trn cu metres of rainwater a year, 67% of which falls between June and September. Its geography in terms of hydrology can be divided roughly into two regions – north and south – based on their distinctive socio-economic and environmental characteristics. The south tends to be more rural, with plentiful rainfall. The north, which encapsulates two-thirds of Mexico’s land mass, is classified as arid or semi-arid, and is generally more developed. It also has a larger population…