World

 

Español

 

Guyana


Trinidad
& Tobago

 






Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Pemex drowning in debt now loses
local fuel market share to big oil

MEXICO FUELS

Pemex loses market share to private companuies. Source:SIE

- Pemex lost 13% of gasoline market under AMLO; 11% of diesel
- AMLO has ordered regulators to stop granting permits for fuels

By Amy Stillman/Bloomberg

MEXICO CITY
Petroleumworld 09 29 2020

Mexican President Andres Manuel Lopez Obrador vowed to restore the national oil company to its former glory. Instead, Petroleos Mexicanos is drowning in debt, its oil output is declining, and now it appears to be losing fuel market share in its own backyard.

In the past 21 months of the Lopez Obrador administration, Pemex has lost roughly 13% of Mexico's gasoline market to private companies, compared with 4.5% in the previous 35 months since Mexico liberalized its fuels market, according government figures compiled by Bloomberg. His government is now seeking to dial back the reforms that have allowed the world's biggest players to wrest business from Pemex.

“The cracks are beginning to appear” in AMLO's energy policies, said Rajan Vig, founder of independent oil-trading firm Indimex in Mexico City. “Demand continues to exist. In fact, it has increased. And if you restrict supply, people are going to have to find more creative ways of bringing in the product.”

In 2016, Mexico allowed companies other than Pemex to import, distribute and sell fuels for the first time since the industry was nationalized in 1938. Since then, the world's top energy companies have invested aggressively in Mexico, with oil majors such as Royal Dutch Shell Plc , BP Plc , Chevron Corp and Exxon Mobil Corp opening thousands of gasoline stations, and international trading houses including Koch Industries Inc., Glencore Plc and Trafigura Beheer BV building fuel storage, transport and logistics infrastructure to bring more barrels into the country.

Those efforts are bearing fruit. At the end of August, private companies were supplying about 17.5% of total gasoline volumes in the country and approximately 27% of diesel, fuels production and imports data from the energy ministry show. While Pemex saw a jump in diesel imports in August, in June and July private companies imported more diesel than the state-owned oil company for the first time.

The trend bodes poorly for the Lopez Obrador administration, which has pledged to strengthen Pemex by dialing back the 2013-2014 energy reforms of the previous administration. Last week, AMLO told energy regulators in a closed-door meeting to stop issuing new permits for fuel retailers and energy infrastructure. He said that he will consider changing the constitution in the next three years if his goal of reversing output declines at Pemex can't be met under current laws.

Reporting by Amy Stillman from Bloomberg

Bloomberg.com
09 28 2020

umworld.com Copyright ©2020 Petroleumworld.

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep /
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2020, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2020, Petroleumworld ™  / Elio Ohep - All rights reserved

 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.