Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
Released June 10, 2024 | SUGAR LAND
en
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Mexico elected its first female president on June 2. Claudia Sheinbaum, an energy engineer, is set to take the helm in October, following the nationalistic administration of her mentor, Andres Manuel Lopez Obrador. But will Sheinbaum follow in Lopez Obrador's footsteps, or promote her own agenda in the energy industry?
The president-elect will place Mexico at the heart of her agenda. Just like it occurred with Lopez Obrador, Sheinbaum is expected to prioritize the activities of national and state companies.
This is especially true for Petroleos Mexicanos (PEMEX) (Mexico City), the national oil company, a focus of Lopez Obrador. The incumbent has waved billions of dollars in taxes on PEMEX in the hope of strengthening the company. Six years into his mandate, PEMEX remains one of the most indebted energy companies in the world, though Lopez Obrador was able to arrest years of decline in oil production.
Sheinbaum likely will maintain her steadfast support for PEMEX and has vowed to continue enhancements across its six aging refineries. Upon becoming Mexico's next President, Sheinbaum will inherit the new, 340,000-barrel-per-day Dos Bocas Olmeca Refinery in Paraiso, Tabasco, one of Lopez Obrador's flagship projects. The inauguration of the downstream unit has been postponed several times, though its startup will lead to fewer Mexican oil exports, as the company will have to redirect higher flows to its domestic refining sector. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project and Plant databases can learn more from a detailed project report and plant profile.
Sheinbaum also says she is open to expanding PEMEX's operations into the mining sector.
"PEMEX's main function is the exploitation, refining and marketing of petroleum, natural gas and their derivatives," Sheinbaum said in March. "But PEMEX, like other oil companies, can participate in the exploitation of lithium, for example, and in the production of thermal and electrical power with renewable-energy sources."
On the mining front, Lopez Obrador has opposed concessions to open-pit mining and introduced a reform to parliament to ban this activity this year. The results of the latest elections give MORENA, the ruling party, and its allies almost a two-thirds majority in the senate, opening the possibility that before Lopez Obrador exits the government in September, such policy could pass.
Sheinbaum, for her part, said "no more open-pit mining concessions will be granted. Those that have a concession will be evaluated, as long as there is recognition by the population and they do not have environmental impacts. The exploitation of hydrocarbons from fracking will not be permitted."
On the electricity front, Sheinbaum will also maintain her support for the Federal Electricity Commission (CFE). The president-elect aims to grant CFE 54% of the domestic electricity market, with the remaining share going to the private sector.
Given Sheinbaum's background in promoting renewable energy, she likely will strengthen the deployment of solar, wind, hydro and hydrogen technologies in coming years, in an effort to reduce electricity prices and Mexico's carbon emissions.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The president-elect will place Mexico at the heart of her agenda. Just like it occurred with Lopez Obrador, Sheinbaum is expected to prioritize the activities of national and state companies.
This is especially true for Petroleos Mexicanos (PEMEX) (Mexico City), the national oil company, a focus of Lopez Obrador. The incumbent has waved billions of dollars in taxes on PEMEX in the hope of strengthening the company. Six years into his mandate, PEMEX remains one of the most indebted energy companies in the world, though Lopez Obrador was able to arrest years of decline in oil production.
Sheinbaum likely will maintain her steadfast support for PEMEX and has vowed to continue enhancements across its six aging refineries. Upon becoming Mexico's next President, Sheinbaum will inherit the new, 340,000-barrel-per-day Dos Bocas Olmeca Refinery in Paraiso, Tabasco, one of Lopez Obrador's flagship projects. The inauguration of the downstream unit has been postponed several times, though its startup will lead to fewer Mexican oil exports, as the company will have to redirect higher flows to its domestic refining sector. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project and Plant databases can learn more from a detailed project report and plant profile.
Sheinbaum also says she is open to expanding PEMEX's operations into the mining sector.
"PEMEX's main function is the exploitation, refining and marketing of petroleum, natural gas and their derivatives," Sheinbaum said in March. "But PEMEX, like other oil companies, can participate in the exploitation of lithium, for example, and in the production of thermal and electrical power with renewable-energy sources."
On the mining front, Lopez Obrador has opposed concessions to open-pit mining and introduced a reform to parliament to ban this activity this year. The results of the latest elections give MORENA, the ruling party, and its allies almost a two-thirds majority in the senate, opening the possibility that before Lopez Obrador exits the government in September, such policy could pass.
Sheinbaum, for her part, said "no more open-pit mining concessions will be granted. Those that have a concession will be evaluated, as long as there is recognition by the population and they do not have environmental impacts. The exploitation of hydrocarbons from fracking will not be permitted."
On the electricity front, Sheinbaum will also maintain her support for the Federal Electricity Commission (CFE). The president-elect aims to grant CFE 54% of the domestic electricity market, with the remaining share going to the private sector.
Given Sheinbaum's background in promoting renewable energy, she likely will strengthen the deployment of solar, wind, hydro and hydrogen technologies in coming years, in an effort to reduce electricity prices and Mexico's carbon emissions.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
