Page 6 - LatAmOil Week 30 2021

LatAmOil MEXICO LatAmOil

US legislators urge Biden to

examine Mexican energy policy

TWENTY US legislators, including members the spirit of the US-Mexico-Canada Agreement
of the Senate and the House of Representa- (USMCA), a free-trade accord that took effect
tives from both the Democratic and Republi- last year, replacing 26-year-old North American
can parties, have urged President Joe Biden to Free Trade Agreement (NAFTA). Without com-
take a closer look at the Mexican government’s petition, they added, Mexican energy policy will
approach to competition in the energy sector in not just hinder investment but may also threaten
light of the challenges faced by US oil, gas and jobs within the US energy sector. The current
power companies working in Mexico. Mexican policy regime “undermines the spirit
In the letter, which was dated July 20, the and letter of the US-Mexico-Canada free trade
legislators voiced serious concerns about the agreement (USMCA) and affects the livelihoods
measures that the administration of Mexican of our fellow Americans working in the energy
President Andres Manuel Lopez Obrador has sector,” they said.
taken to insulate state-run organisations from The letter to Biden drew criticism from
competition. They said they had expressed Lopez Obrador, who stressed that the 20 sig-
similar worries in a letter to former President natories only represented a small fraction of
Donald Trump last year and thanked US Trade the 435 members of the US Congress. “There
Representative (USTR) Katherine Tai, a Biden is really no problem,” he was quoted as saying
administration official, for drawing attention to by Argus Media last week. “Mexico’s situation
the matter during a recent visit to Mexico. is exceptional, unbeatable for investment. We
“We were pleased to see Ambassador Kather- see, as always, some who protest, but they are an
ine Tai raise this with her counterpart last month insignificant minority.” ™
and believe this recent escalation requires your
immediate and sustained attention and a timely
solution,” they wrote.
The legislators expressed particular concern
about Mexican legislation and policies that
have been introduced this year for the express
purpose of ensuring the dominance of govern-
ment-run companies such as the national oil
company (NOC) Pemex and the national power
provider CFE. These moves have given Mexican
regulators a green light to stall US investors by
various means, including the cancellation or
postponement of permits, they said.
They went on to say that the Lopez Obrador
administration’s energy policy was at odds with Mexico’s president aims to promote Pemex’s interests (Photo: LopezObrador.mx)

Independent operators brought crude oil

output to record high in June, CNH says

MEXICO’S National Hydrocarbon Commis- figure ever reported in Mexico, the commission
sion (CNH) revealed that the total volume of noted.
crude oil produced by independent operators It also reported that more than 70% of the
had risen to an all-time high last month. total had come from just three companies: Eni
According to data release last week by CNH, (Italy), Hokchi Energy (Mexico) and Petrofac
independent exploration and production com- (UK).
panies extracted nearly 70,000 barrels per day Together, these three firms extracted nearly
(bpd) of oil in June. This is the highest monthly 50,000 bpd in June, it said.

P6 www. NEWSBASE .com Week 30 29•July•2021