On 3rd March, The British Chamber of Commerce organized the breakfast-conference: The Impact of Oil Prices falling: A Global look and the Impact on Mexico.
Alberto de la Fuente, Dr. Ernesto Marcos, Mtra Alejandra León and Dr. Eduardo Camero.
Panelists were: Dr. Ernesto Marcos, President of Asociación Mexicana de Empresas de Servicios Petroleros, A.C., Mtra Alejandra León Director of Latin American Upstream IHS-CERA, Dr. Eduardo Camero from Secretaría de Hacienda y Crédito Público (SHCP) and the event was moderated by Alberto de la Fuente, President of Shell.
Alberto De la Fuente encouraged attendees to participate by taking questions from the audience, creating a more dynamic panel. Panelists were also given an initial forum to discuss the context and issues surrounding falling oil prices. Among the subjects discussed by the panelists were OPEC, new competition in the market that forces it to work in a more traditional way.
Saudi Arabia is now exporting half of what it did before and the USA is taking over filling in this production gap while Iran is expected to re-enter the global market later this year. COP21 was also brought to the table, and the
The event took place at the Marquis Reforma.
commitments made will have to be honoured however, with renewable energy and storage prices falling, this is becoming more feasible.
Panelists also mentioned that cutting production is costly and cannot be immediate so oil companies are reducing production for future projects. Suppliers and providers are also feeling the pressure as oil companies are pushing their costs down.
Better tax collection by SAT (Mexican Tax Office) helped to absorb the impact on GDP of the falling oil price. An 8% cut in costs (a large part being PEMEX and the other Federal Government) helped soften the blow.
In the Q&A session topics covered delays by Pemex in migrating contracts, following through on the reform and bidding rounds and establishing prices. Panelists also spoke well of recent rounds for efficiency and transparency.
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