•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Mexico's Senate committees approve key parts of energy bill

    Mexico’s Senate committees have approved a set of laws to regulate the opening of Mexico's oil and gas industries to private investment, Reuters says.

    The committees passed four bills fleshing out a historic overhaul of the state-run energy sector, including the power market. The bills will pass to the floor of the Senate on July 17 and then to the lower house of Congress for approval.

    Senators raised requirements for the amounts of local labor and materials investors will need to use in energy projects. The approved bill called for local content of 25% by 2015 that would rise to 35% by 2025. The original draft set the local content bar at 25% by 2025. The changes keep the content requirements below regional rival Brazil, which has rates as high as 55%.

    Senators also amended a section of the draft law that allowed for the expropriation of land containing oil or gas reserves. In its place, they put provisions that would allow companies to lease land and give owners a share of profits. Among the bills approved by the committees was a hydrocarbons law, which sets out key elements of the energy reform, including contracts, fines, and the ownership of Mexican oil and gas.

    Another section establishes the framework for private companies to sell electricity on the open market. Private companies can currently generate their own power, but they can only sell excess energy to the state electricity company. The Reuters report notes that opposition leftist lawmakers abandoned the committee meetings, saying the bills would give away the country's oil wealth to foreign companies.

    Most Popular

    Related Articles

    Moody's: Brent and WTI assumptions lowered on higher production, muted demand

    08/07/2015 Moody’s Investors Service has lowered its price assumptions for Brent crude and West Texas Intermediate (WTI) crude to reflect increases in oil production coupled with muted demand. The rating agen...

    Quantifying political risk

    08/07/2015

    New PRIX index analyzes political risk in oil markets

    Fitch: Rig-linked US shale production decline of 7% possible in second-half 2015

    08/07/2015 The nearly 55% drop in US Lower 48 rig counts during the first half of 2015 is forecast to contribute to a second-half 2015 production decline of roughly 7% in tight oil and shale gas regions at Ju...

    UPSTREAM NEWS

    08/07/2015

    Chesapeake stock plummets on quarterly loss

    08/06/2015 Oklahoma City-based Chesapeake Energy Corp reported another significant quarterly loss on August 5, and its shares declined about 10% over investor and analyst concerns about the company’s heavy de...

    IHS: Gloomy price outlook signals continued impairments for E&P operators

    08/06/2015 An elevated level of asset impairments in the first quarter of 2015 – coupled with a bleak commodity price outlook – is putting 2015 on track to suffer the most exploration and production asset imp...

    More Oil & Gas Financial Articles

    Moody's: Brent and WTI assumptions lowered on higher production, muted demand

    Fri, Aug 7, 2015

    Moody’s Investors Service has lowered its price assumptions for Brent crude and West Texas Intermediate (WTI) crude to reflect increases in oil production coupled with muted demand. The rating agency has maintained its price assumptions for North American natural gas, reflecting continued strong natural gas production and demand from electrical generation.

    Quantifying political risk

    Fri, Aug 7, 2015

    New PRIX index analyzes political risk in oil markets

    Fitch: Rig-linked US shale production decline of 7% possible in second-half 2015

    Fri, Aug 7, 2015

    The nearly 55% drop in US Lower 48 rig counts during the first half of 2015 is forecast to contribute to a second-half 2015 production decline of roughly 7% in tight oil and shale gas regions at June operating and activity levels, according to Fitch Ratings.

    UPSTREAM NEWS

    Fri, Aug 7, 2015

    Chesapeake stock plummets on quarterly loss

    Thu, Aug 6, 2015

    Oklahoma City-based Chesapeake Energy Corp reported another significant quarterly loss on August 5, and its shares declined about 10% over investor and analyst concerns about the company’s heavy debt-load and spending even as commodity prices remain too low for profitability for many US producers.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ