IPD EnergyNet
Our thought provoking and timely analysis of the energy industry offers IPD clients a unique local perspective that enables them to better understand energy dynamics and create opportunity.
Mexico
Round Zero Decision - The Slope Becomes More Slippery
August 28th marks the end of the 2013 Energy Reform’s five-year Round Zero period, intended to stimulate PEMEX exploration efforts and set it on its own trajectory. Lower oil prices, insufficient CAPEX, and PEMEX’s exploration acreage need with bid rounds suspended are the excuses. But they miss the mark. Handing areas to PEMEX likely to see insufficient development without minimum work program commitments only solidifies its fate as 100% political. Beyond the CNH’s shaky legal decision, this only further erodes market confidence.… [READ MORE]
Venezuela
New U.S. Sanctions and Licenses: Looking at all the Angles (Part I)
Many consider Executive Order 13884 to represent the United States’ first foray into secondary sanctions against Venezuela. But the order’s reach is questionable. It is somewhat vague, and references a growing list of licenses. Thus, it is difficult to determine what kind of impact it will have. This report is the first in a series on the U.S. administration’s latest actions against the Maduro regime, and their potential impact. … [READ MORE]
Mexico
4T Ideology Hits New Heights - Gas Contracts Arbitration
Even as it gave him a political boost before taking office, AMLO’s October 29th cancellation of the US$ 13 billion Texcoco airport shook markets and Mexican society. The subsequently announced US$ 8 billion plus Dos Bocas refinery PEMEX will supposedly build before July 2022 followed. But it is actually the latest debacle -- the CFE’s smaller US$ 2.9 billion in disputed payments to seven pipeline developments -- via force majeure declarations -- heading to international arbitration that is likely to do the broadest damage to Mexico.… [READ MORE]
Venezuela
Venezuela Oil Output Estimates - More Art than Science
As the market seeks to analyze the impact of Venezuela’s political and economic crisis on crude production and exports, it has become evident that most observers lack clarity on how the market has evolved. Over the years, OPEC has provided continuous benchmarking. IPD’s calculations regularly reflect different volumes than the OPEC reports. Here is why.… [READ MORE]
