Listado de la etiqueta: Petroleum

The Importance of Lloyd’s Market Within the Energy Reform

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The iconic Lloyd’s building in London is one of the most emblematic and important places for the insurance industry and it is commonly known as the birthplace of marine insurance throughout the world. It is where vessels, oil rigs and the most complex drilling and construction projects both on land and sea, are protected. 

By: Paulina Meza    Photo: NRGI Broker

e wanted to enter the world of the petroleum risk assurance, that is why we interviewed Graciela Alvarez Hoth, CEO of NRGI Broker in the Lloyd’s building, in front of the iconic  bell that sounds when an important event happens in this market. For some thirty years, Graciela Alvarez has specialized in the placement of insurance and re-insurance coverage of intricate oil related activities for various national and foreign companies.

When asked about the origin of Lloyd’s she replied … «It all started in the Edward Lloyd’s coffee house, as the birthplace of marine insurance during the lat 1600’s where traders and merchants would meet to insure their vessels and cargoes. Today the latest Lloyd’s building is still the focal point of the British insurance industry, but the merchants and traders have been replaced by the world’s most prestigious brokers and solvent insurers but still meeting in a single market place, under the Lloyd’s Franchise.

It is in Lloyd’s where we place the reinsurance through one of the companies of Grupo Vitesse, its reinsurance broker specialized in the full spectrum of risks as required by the energy industry in Mexico, an activity that nowadays has a high importance due to the global best practices which will become obligatory for all companies and corporations involved with contracts within the Energy Reform in our country.

Our expertise in the design of comprehensive insurance programs to cover the risks assumed by companies in the oil fields, and complex activities performed daily in this industry have allowed us to successfully face the moment of truth, when you have to attend a major claim, highlighting and demonstrating the importance of being well insured.

«The result of working with professionalism, efficiency, passion and loyalty over the years in the oil industry, has given us the expertise and capacity to respond as we enter a new era, not only to oil companies, but also to advise companies in all sectors of the energy market be it renewable or traditional.«

In NRGI Broker we have the commitment to exceed excellence in service, it is our best guarantee to meet the expectations of the most demanding customers who will need support in order to fulfill one of the most important requirements being established within the Energy Reform – being the best global practices in insurance». Alvarez Hoth emphasized.

lloyds energy reform

 

OPEC’s Stable Market Outlook Points to Status Quo at Meeting

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OPEC kept forecasts for global oil supply and demand unchanged in its last monthly assessment before members meet to review the market.

The 13 nations of the Organization of Petroleum Exporting Countries pumped 32.44 million barrels a day in April, slightly less than will be required to meet demand in the third quarter. Production rose as gains in Iran and Iraq compensated for losses in Nigeria and Kuwait. Investment by the global oil industry through 2018 will slump to less than half the amount spent from 2012 to 2014 following the collapse in prices, OPEC said.

Oil prices have rebounded more than 75 percent from the lows reached in February as U.S. shale production falters, signaling that Saudi Arabia’s strategy to re-balance oversupplied world markets is taking effect. OPEC, which failed to complete an accord with non-members last month on capping output, has no current plans to revive supply limits when ministers meet on June 2, six delegates said on May 4.

“We shouldn’t expect any freeze and definitely not any cut because OPEC sees things are improving from a fundamental point of view,” said Torbjoern Kjus, an analyst at DNB ASA in Oslo. “The structural decline based on lower investment is starting to show up in numbers for non-OPEC. That damage is done, even if prices recover in the second half.”

April Increase

OPEC production increased by 188,200 barrels a day last month to 32.44 million, according to the report. While the group’s supply has typically exceeded the required amount in recent months, April output is about 380,000 barrels a day below the 32.8 million that OPEC estimates will be needed in the third quarter. That potential shortfall is a further indication the organization’s policy is working.

Global oil demand will increase by 1.2 million barrels a day, or 1.3 percent, this year to 94.18 million a day, according to the report. Supplies from outside the group will shrink by 740,000 barrels a day to 56.4 million.

“A return to balance is a shared interest among consumers and producers alike,” the group’s Vienna-based research department said in the monthly report.

 

 

Font: Bloomberg

Russia’s giant Vankor oilfield reaches peak production level: ONGC

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Russia’s giant Vankor oilfield, where Indian state oil firms are acquiring a significant stake, has reached peak production level, but technology to increase oil recovery will optimise the output and delay its decline, the head of ONGC’s overseas arm said. 

Indian state firms hope to get 10.5 million tonne of crude oil from Vankor once deals are completed to acquire 49.9 % in Russia’s second-largest oilfield, whose output of 21million tonne a year is about the same as ONGC’s entire production from all its Indian fields. Rosneft had announced in March last year that Vankor’s output would decline slightly from the plateau level of 22 million tonne a year. 

«We had entered at the peak production level, and as it happens in all oil fields, this field too will undergo a decline. But with the application of enhanced oil recovery techniques, the decline can be delayed and production optimised,»

ONGC announced a deal to buy 15% stake in the Vankor last year, and is in talks to raise that to 26%. This month, a consortium of Indian Oil Corporation, Oil India and Bharat Petroleum struck a deal to acquire 23.9% in Vankor. Official sources said ONGC paid $1.27 billion, while the consortium spent $2 billion for the bigger stake, giving the same valuation to the giant field. 

Last week, Rosneft said the «achieved evaluation» of the Vankor project was $3.3 per barrel of reserves. Recoverable reserves of Vankor, the largest field commissioned in Russia in the last 25 years, stood at 361 million tonne of oil and condensate and 138 bcm of gas as of January this year.  

India and Russia have intensified energy engagement over the past year.

Copyright: The Economic Times

Safety Investment Remains Resilient Despite Downturn

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Oil and gas companies are continuing to invest in safety research despite the current oil price downturn, DNV GL representatives told Rigzone during a recent trip to the firm’s Spadeadam testing and research facility in Cumbria, England.

“Business is tough in the oil and gas sector but committed customers are still investing in safety improvement. They’re still conducting research into major hazards,” said Gary Tomlin, DNV GL UK’s vice president of safety and risk.

Naturally, the level of this investment was slightly hampered by the drop in crude prices, but investment has started to increase over the last couple of months.

“We saw a hiccup and to be honest, it’s inevitable. When the oil price drops from $110 a barrel to $27, you’re kidding yourself if you’re not going to see a hiccup,” said Hari Vamadevan, DNV GL – Oil & Gas’ regional manager for the UK and West Africa.

“We’ve seen a pickup I would say over the last couple of months … oil recovery to $50 has helped a little bit, I think there’s positive cash flows for some companies, but many companies haven’t stopped [investing],” he added.

Investment in this type of research is expected to rise even further over the not too distant future, as the oil price achieves an anticipated rise and oil and gas firms gain more access to expendable income.

From an industry perspective we think … we’ll see an upturn 2017-2018,” said Tomlin. “I think that we’ve plateaued. We are a cyclical oil and gas industry … I think we’ve hit the low point, but we do need to be aware that we still need to control costs,” said Vamadevan. “I think companies will become profitable at $50 and $60 per barrel, and as the price rises I think there will be more investment. So I am hopeful that we will see more activity going forward,” he added.

Oil, Gas Safety Testing ‘Critically Important’

Oil and gas major hazards testing and research was described as critically important by Tomlin, who outlined the significance of Spadeadam for the hydrocarbon sector.

“It’s a unique facility worldwide. There are other facilities like this, but none that do the breadth of the work we do, so it’s something we’re incredibly proud of. The work we do here is of critical importance,” said Tomlin.

DNV GL Spadeadam Testing and Research is designed to carry out full-scale hazardous trials and simulate real-world environments. Situated in 120 acres (50 hectares) of Ministry of Defence land in the north of England, it offers the opportunity to test equipment, components, products, techniques and processes, and to provide data to validate computer models. 

aff at Spadeadam have recreated a number of major accidents at their facility – ranging from the Piper Alpha platform explosion to the Buncefield oil storage terminal fire – to find out exactly what went wrong and help prevent future incidents in the oil and gas industry.

“We’re undertaking research here that helps … [oil and gas companies] understand hazards that they  manage in their facilities, so that they can take measures to limit the risk to their people and their infrastructure,” said Tomlin. “We get people to experience large scale fires and explosions so that they can see and feel the power of these events. They can’t get that anywhere else in the world.”

Most safety lessons in the oil and gas sector come from real world events, said Vamadevan, who highlighted how experiences of this nature can be more useful than theoretical work.

“If you … felt a jet fire, you experience what happens in an explosion, it means you understand it much better than reading in a textbook, seeing a colour contour on a map or seeing a percentage,” Vamadevan told Rigzone.

Copyright: Rig Zone

Oil Bears Dominate Market as Doubt Grows Over Output Limits

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The longer OPEC and other producers talk about a ceiling on crude output, the more doubts grow in the market.  

Money managers increased wagers on falling prices by the most in three months as a meeting between Russia and Saudi Arabia ended without specific measures to support prices. Producers have pledged to discuss action in Algiers later this month.

“The more they talk, the less people listen,” said Michael D. Cohen, an analyst at Barclays Plc in New York. “If you look at the actual statements from the Saudis, there’s not a lot of enthusiasm. They’re saying that either they don’t believe a substantial intervention is needed right now or that if other producers want a freeze, they’ll go along.”

Saudi Arabia’s Energy Minister Khalid Al-Falih said on Sept. 5 that he’s optimistic producers will agree to cooperate in Algiers. He spoke after meeting with his Russian counterpart, Alexander Novak, at the G-20 summit in China. Novak said that a freeze in production by OPEC and Russia would be the most effective way of stabilizing the market.

The International Energy Forum, including 73 countries that account for about 90 percent of the global supply and demand for oil and natural gas, will meet in the Algerian capital Sept. 26-28. The Organization of Petroleum Exporting Countries will hold informal talks on the sidelines of the gathering.

Parsing Words

“Everyone is sifting for clues on whether OPEC will reach an agreement to limit production or leave it uncapped with the potential for higher output,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. “At this point we’re waiting for the outcome of the talks. A lot of people are standing to the side while others are building positions with a specific view in mind.”

A freeze deal between OPEC members and other producers was proposed in February. A meeting in April ended with no accord because Iran refused to join, while Saudi Arabia insisted that its rival take part. Iran has said it’s too soon to cap output as it’s still restoring production curbed by sanctions.

Speculators bolstered their short position in West Texas Intermediate crude by 34,954 futures and options during the week ended Sept. 6, according to the Commodity Futures Trading Commission. Bets on rising prices declined.

Prices Drop

WTI futures dropped 3.3 percent to $44.83 a barrel in the report week and prices lost 1.6 percent to $45.15 at 9:18 a.m. New York time.

Futures surged Sept. 8 after the Energy Information Administration reported U.S. crude inventories fell 14.5 million barrels in the week ended Sept. 2, the biggest drop since January 1999. Prices retreated the next day as speculation grew the supply drop was a one-off caused by a tropical storm that disrupted imports and offshore production.

Money managers’ short position in WTI climbed to 130,274 futures and options. Longs fell 1.9 percent. The resulting net-long position dropped 19 percent. Net-long positions in Brent crude decreased by 37,226 contracts, according to ICE Futures Europe.

In other markets, net-bullish bets on gasoline declined 32 percent to 11,148 contracts. Gasoline futures dropped 9.1 percent in the report week. Net-long wagers on U.S. ultra low sulfur diesel tumbled 56 percent to 9,840 contracts. Futures declined 4.3 percent. 

Gambling Momentum

“There’s a lot of gambling taking place,” said Stephen Schork, president of the Schork Group Inc., a consulting company in Villanova, Pennsylvania. “A lot of money managers are betting that a bottom has been put in but I’m skeptical.” 

U.S. crude stockpiles remain at their highest seasonal level in more than 20 years. Refineries plan maintenance programs for September and October when fuel demand is lower. Over the past five years, refiners’ thirst for oil has dropped an average of 1.2 million barrels a day from July to October.

“The market will probably yo-yo in a range through the maintenance season but there’s downside risk,” Schork said. “If demand isn’t a strong as hoped and crude inventories rise, the market could take another leg lower.”

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Copyright: Bloomberg

Big Oil Pledges $1B For Gas Technologies To Fight Climate Change

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Some of the world’s biggest oil companies, including Saudi Aramco and Royal Dutch Shell, pledged on Friday to invest $1 billion to develop climate-friendly technologies as a global deal to wean the world off oil came into force.

The Oil and Gas Climate Initiative (OGCI), which also includes Total, BP, Eni, Repsol , Statoil, CNPC, Pemex and Reliance Industries, launched the Climate Investments fund which will invest in technologies to reduce carbon emissions but which will also help an increase gas use.

The companies pledged to use a large share of the $1 billion for speeding up carbon capture, use and storage (CCUS) in gas-fired power plants and towards reducing leakages of methane, one of the most polluting greenhouse gases.

«If we can reduce and build the technologies to monitor and reduce fugitive methane emissions that’s like an essential licence for us to be able to advocate natural gas,» BP Chief Executive Bob Dudley told journalists.

The investment is nevertheless dwarfed by the joint annual spending of the member companies, even as they battle one of the longest downturns in the sector’s history. Shell, Total, BP, Statoil, Repsol and Eni are expected to spend nearly $100 billion in 2016.

The 10 firms, which jointly produce around 20 percent of the world’s oil and gas, have already screened a list of 200 CCUS-related technologies and are now assessing which one or ones to develop to commercial scale.

The group will also invest in improving efficiency in transport and energy-intensive industries.

The announcement coincides with the official coming into force of the 2015 Paris Agreement, intended to wean the world economy off coal, oil and gas in the second half of this century in order to slash carbon emissions.

The oil and gas sector, which is directly responsible for 5 percent of manmade greenhouse emissions and the use of its products for another 32 percent, is under growing pressure from investors and the general public to help fight climate change.

«If the CEOs of the 10 largest corporations meet six times during the year it’s not for philanthropy, it’s real business,» said Patrick Pouyanne, chief executive of Total.

Critics have said oil companies need to do more to reduce emissions and to shield themselves from climate change risks.

«Companies could be worth considerably more, not less, if they aligned their portfolios with 2 C by exercising capital discipline and opting for lower-cost upstream projects that make both financial and climate sense,» said Anthony Hobley, chief executive of think tank Carbon Tracker Initiative.

Copyright: Rig Zone

Oil Bets Are Biggest in 9 Years Amid OPEC, Trump Volatility

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Money managers, producers and consumers made the biggest bets on West Texas Intermediate crude prices in nine years, amid signals more volatility is coming.

Global markets were roiled after Donald Trump’s election as U.S. president and as OPEC continued negotiations on a deal to cap output. The U.S. dollar climbed to the highest since January. A measure of oil volatility surged last week to a seven-month high, a sign that traders were anticipating bigger price swings.

Wagers on higher and lower prices held by speculators and hedgers reached 1.47 million contracts in the week ended Nov. 15, the most since 2007, U.S. Commodity Futures Trading Commission data show. Trading volume of calls giving investors the right to purchase WTI futures rose to a record that day. The CBOE Crude Oil Volatility Index reached the highest since April. Brent oil shorts, bets that prices will fall, rose to the highest in more than two years.

“There’s tension in the market, with both producers and consumers worried about what OPEC does or won’t do on Nov. 30,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. “They want to be protected from surprising price moves.” 

OPEC Meeting

Investors are weighing the chances that the Organization of Petroleum Exporting Countries will complete a deal to cap output at its Nov. 30 meeting in Vienna. While Saudi Arabian Energy Minister Khalid Al-Falih told Al Arabiya television he’s optimistic a deal will be reached, only seven of 20 analysts surveyed by Bloomberg last week expect the group to set output targets for its members.

OPEC agreed in September to cut their collective output to 32.5 million to 33 million barrels a day and has been trying to persuade other suppliers, notably Russia, to join the cuts. OPEC Secretary General Mohammed Barkindo said he’s confident the group can reduce record oil inventories and bring forward the rebalancing of the market.

“The Saudis are working hard to reach a deal,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “You don’t fight the Fed in the bond market and when it comes to oil you don’t fight the Saudis.”

The September agreement marked the end of OPEC’s two-year long experiment with pumping at will. Saudi Arabia led the group in the effort to grab market share and curb the development of more expensive reserves such as U.S. shale.

U.S. Production

While U.S. production has dropped from last year’s 44-year high, the decline is slowing. The Energy Information Administration this month raised its output forecast for 2017. Rigs targeting oil in the U.S. rose the most in 16 months last week, according to Baker Hughes Inc.

Producers and merchants increased short positions, or protection against lower WTI prices, to the highest level since March 2011. They added 66,613 bearish contracts over the past two weeks as prices retreated from last month’s peak at above $50 a barrel.

“The Saudis want higher prices but won’t sacrifice just to see a major competitor, U.S. shale, benefit,” said Sarah Emerson, managing director of ESAI Energy Inc., a consulting company in Wakefield, Massachusetts. “The Trump election changes things. In one day the U.S. shale business got better. The government will be more responsive to the industry.”

Money managers’ net-long position in WTI advanced for the first time since mid-October, climbing by 3,906 futures and options to 163,321. Shorts climbed 14 percent while longs rose 8.1 percent. WTI gained 1.8 percent to $45.81 a barrel in the report week. It rose 2.7 percent to $46.93 as of 8:48 a.m. on Monday.

Brent Bets

In the Brent market, money managers increased short positions by 11 percent to 157,016 during the week, the highest level since September 2014, according to data from ICE Futures Europe. The net-long position in the global benchmark slipped by 4.6 percent during the week to the lowest since January.

In fuel markets, net-bullish bets on gasoline decreased 35 percent to 25,796 contracts, as futures slipped 2.5 percent in the report week. Money managers were net-short 393 contracts of ultra low sulfur diesel, from net-long 7,791 the previous week. Futures advanced 0.2 percent.

“I suspect that when the OPEC meeting is over there will have been a lot more smoke than fire,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “If they don’t come up with a convincing agreement, they’ll be forced to revisit the issue before long.”

 

Copyright: Bloomberg

¿Cuánto costó el derrame del Deepwater Horizon?

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El 20 de abril de 2010, la empresa británica British Petroleum (BP) realizaba operaciones de exploración de aguas profundas en el pozo petrolero “Macondo”, ubicado a 75 kilómetros de la costa de Luisiana, cuando se produjo un escape de gas, que provocó una explosión y posteriormente un incendio que duró 36 horas y terminó con el hundimiento de la plataforma semi-sumergible Deepwater Horizon.

Las consecuencias fueron graves: millones de barriles de petróleo derramados en el mar, lo que provocó una superficie contaminada de entre 86,500 y 180,000 kilómetros cuadrados que pudo contenerse casi tres meses después de la tragedia; afectación a especies animales, algunas de ellas en peligro de extinción; el fallecimiento de 11 personas y otras más que resultaron heridas.

Este siniestro es considerado uno de los peores en la industria del petróleo, no sólo por los daños directos provocados, sino también por los perjuicios resultantes, tales como la afectación causada a las actividades pesquera y turística.

Además de BP, la empresa Transocean –propietaria de la plataforma y encargada de su mantenimiento- y Halliburton, fueron consideradas responsables del siniestro[1].

Tan sólo los pagos erogados por BP ascienden, de acuerdo con las cifras de la misma empresa, a USD 61 billones, por concepto de los costos relacionados con el derrame, limpieza, reclamaciones económicas y pagos al gobierno[2].

Adicionalmente, BP tuvo que enfrentar diversos juicios por los cargos de “negligencia grave” que le imputaron por varios demandantes.

Que una compañía del tamaño y solvencia de BP haya enfrentado problemas financieros a partir de un siniestro, demuestra que todos estamos expuestos a sufrirlos, ya que los costos de un siniestro pueden llegar a ser incalculables.

Contratar un seguro con los montos y coberturas adecuadas, es fundamental para responder por los daños y perjuicios que se puedan causar a terceros, pero además con ello el asegurado consigue el doble propósito de proteger su patrimonio.

En NRGI Broker, somos expertos en seguros petroleros. Acércate a nosotros, con gusto te atenderemos.

[1] Deepwater Horizon Incident Joint Information Center. U.S. Scientific Team Draws on New Data, Multiple Scientific Methodologies to Reach Updated Estimate of Oil Flows from BP’s Well [boletín de prensa]. 15 June 2010. Disponible en: http://www.deepwaterhorizonresponse.com/go/doc/2931/661583/

[2] Gulf of Mexico restoration, disponible en: http://www.bp.com/en_us/bp-us/commitment-to-the-gulf-of-mexico/gulf-mexico-restoration.html

 

La importancia de la Línea Base Ambiental

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De conformidad con los artículos 27 párrafo séptimo de la Constitución Política de los Estados Unidos Mexicanos; 15 de la Ley de Hidrocarburos y 38 fracción II de la Ley de Órganos Reguladores en Materia Energética, para llevar a cabo las actividades de extracción de hidrocarburos, los particulares o empresas productivas del Estado deben celebrar un contrato con la Comisión Nacional de Hidrocarburos (CNH).

En dicho contrato, se establece la obligación de elaborar, en un plazo de 180 días después de la Fecha Efectiva (la fecha de firma del Contrato), los estudios para definir la Línea Base Ambiental (LBA), previo al inicio de las actividades petroleras, la cual debe ser presentada ante la Agencia de Seguridad, Energía y Ambiente (ASEA).

La LBA se refiere a “las condiciones ambientales en las que se encuentran los hábitats, ecosistemas, elementos y recursos naturales, así como las relaciones de interacción y los servicios ambientales, existentes en el área contractual, al momento en que se elabora el estudio para su determinación”. Permite identificar daños ambientales (los que ocurren sobre algún elemento natural a consecuencia de un impacto ambiental adverso) y daños preexistentes (los pasivos ambientales presentes en el área contractual).

A través de la LBA se determinan las responsabilidades del contratista, el cual sólo podrá excusarse de los daños ambientales y daños preexistentes que hayan sido reportados en la LBA; las autoridades competentes, por su parte, vigilarán que el contratista o asignatario que estuviera a cargo del Área Contractual con anterioridad a la Fecha Efectiva asuma la responsabilidad y los gastos relacionados con la restauración y compensación de los Daños Ambientales y la caracterización y remediación de los Daños Preexistentes.

No elaborar la LBA, no hacerlo en los tiempos establecidos o realizarla de manera deficiente, además de ser un incumplimiento legal, puede implicar que el contratista asuma la responsabilidad respecto a daños ambientales, que pudieron haberse ocasionado de manera previa, lo que puede significar el pago de elevadas sumas económicas para remediarlos y/o compensarlos. Al respecto, se debe considerar que el seguro de responsabilidad ambiental sólo ampara los daños ocasionados a partir de su contratación.

En NRGI BROKER sabemos que la elaboración de la Línea Base Ambiental es fundamental por su impacto en el ámbito de la responsabilidad ambiental y como soporte para un adecuado programa de aseguramiento; por eso, nos encargamos de ofrecer a nuestros clientes las mejores opciones en seguros y proporcionamos asesoría legal y ambiental a lo largo de la toda la cadena de valor del Sector Hidrocarburos. Acércate a nosotros.

 

 

Challenges and opportunities for Mexican and foreign companies in the energy sector in Mexico.

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The hydrocarbon sector in Mexico has always faced challenges and opportunities. The constitutional articles that were modified as a result of the Energy Reform brought elements for a reliable and safe management of hydrocarbon resources, which reduce the technical, operational and legal risks faced by the interested groups of this industry.

The appearance of figures such as the State Productive Enterprises, the opening to the participation of national companies, as well as foreign investment; the effective regulations by the regulatory bodies guarantee us the progress of a country that strengthens the sector that had been limited in its capacity to invest.

The determination of contractual areas, the bidding acts, the assignments and migrations, the protection of information collected for the hydrocarbons exploration and extraction of and their adequate use, are some of the achievements that have been obtained to give regulatory certainty and equality of conditions to the energetic actors.

Challenges are faced, but above all, opportunities that stimulate the potential of Mexican and foreign companies dedicated to the energy industry arise. Mexico is rich in hydrocarbon resources, one of the opportunity areas is the use of mature deposits, promoting the use of advanced recovery processes.

Advanced recovery processes encompass a wide range of activities such as the implementation of specific techniques.

In particular, unconventional deposits are also part of the country’s prospective resources. These resources will have a significant impact on the contribution of a better energy supply, favoring local and national development. It requires high technical training, attraction of various types of industries in the hydrocarbons value chain, advanced studies, training of human capital, among some other factors appropriate for the energy sector.

Recall the deep water challenge and its great boom and interest in the bidding processes that defy us to continuous improvement. Given the need to properly explore and extract energy with state-of-the-art technology and optimize production processes.

The heavy and extra heavy crudes are also relevant, in a significant way they abound in the Mexican territory. All this motivates us to deepen the knowledge of the deposits, to modernize the petroleum engineering. It allows us to contribute from the hand of the leaders of the energy industry, to a better administration and obtaining of hydrocarbons.

With a favorable scenario and of great importance for the national economy, for the next few years fossil fuels will continue to be the main source of energy.

The challenges and opportunities presented by the hydrocarbons sector will give certainty that the energy industry in Mexico will continue to be a fundamental topic in the country’s public agenda, will force us to be more creative, to propose and carry out cutting-edge activities and to move with a sense of urgency to work together for the benefit of the Nation.