Mexico
The ASF and the Further Erosion of Checks and Balances
In late February, the ASF became the latest government “checks and balances” focused entity to be caught in AMLO’s crosshairs. The ASF’s 2019 audit of government expenditures, and specifically the cost of cancelling the Texcoco airport project at the onset of the current administration, irked AMLO’s ire. The retracting, waffling, and likely eventual burying of the matter only showcases the lack of independence of many Mexican government entities, a situation this government continues to exploit.… [READ MORE]
Venezuela
Gas Pipeline Explosion Sparks Chain Reaction
This week’s abrupt decline in Mesa 30 and Santa Barbara light crude output from the eastern Venezuela Carito and Pirital fields coincides with a recent gas pipeline explosion at the PIGAP II gas injection facility. While it is too early to tell how long output may be affected, Orinoco Oil Belt heavy crude production and Venezuela’s biggest export segregation, Merey 16, could be hit.… [READ MORE]
Mexico
Nationalism and Giant Discoveries Reach New Hyperbole
March 18th marked the 83rd anniversary of Mexico’s oil nationalization. Officials commemorated the date by hosting the ceremony at the Dzimpona-1EXP well site in Tabasco. Claimed to be the third “giant” field discovered by PEMEX during this administration, optics over details were the order of the day as the government doubled down on its transformation rhetoric. But the staged announcement was again premature and only served to mask PEMEX’s poor E&P record over the past 15 years. AMLO’s vision for the sector is the bigger concern.… [READ MORE]
