We will be closely following developments in Mexico’s energy industry, post-reform, with our partners at Southern Pulse. Energy reforms have opened up oil sector development to outsiders by removing restrictions on foreign investment that had been in place for 75 years. Confidence in the sector is at an all-time high right now, with prospects outshining the earlier pre-salt potential of Brazil. Key recent developments include:
• This week, state-run Pemex announced that Mexico would begin shipping extra light Olmeca crude oil to European customers this month, which marks the first diversification of export following efforts at opening up the industry. We can also expect Mexico to increase exports to Asian markets in line with an announcement it made last summer. The bulk of Mexico crude exports go to the US from three Gulf coast terminals; however, officials said crude exports should be resumed shortly from a fourth terminal, Salina Cruz.
• Six brokerage firms in Mexico are predicted that the Mexican Stock Exchange’s 35 leading stocks (the IPC) will reach a historic high by the close of 2014. The brokerages point to improved economic stability, better business prospects for IPC companies, and reduced external volatility.
• Through our partners at Southern Pulse, we are closely following developments concerning Pemex. On 16 December, in the municipality of Tezoyuca,…