APRIL 1 TO MAY 19, 2020
STRATEGY + INNOVATION IS WHAT WILL ALWAYS TRANSFORM THE ENERGY INDUSTRY
PRESENTED BY
OFFICIAL MEDIA
MEDIA PARTNERS
OPENING MESSAGE
PAGE 02
OIL AND GAS ALLIANCE MEMBERS
PARTICIPANTS Engineer Jeimy Mathison - General Manager - Kas Oil Integrated Services Lic. Sergio Sentíes - General Director - CMX 360 Lic. Ricardo Zúñiga - Executive Director - Financial Collective At this moment, the most important thing is to be responsible for each of the actions we take in each niche where it is our responsibility to play and to have the capacity to face adversity. Throughout the history of the oil market in oil prices we always have highs and lows, we have experienced many crises and each one of these has helped us transform and strengthen ourselves. On the subject of the COVID-19 pandemic, it has led companies to take actions that help safeguard the integrity of human resources where health is the priority, which is what will generate value for each of the companies. The oil sector is classified as one of the essential activities of the country and the economy, for this reason all those invoked must continue walking with the same force, transforming the way of operating, continuing to operate and generating value.
OPENING MESSAGE
PAGE 03
It has to continue operating, the energy
These are difficult times, but it can be
industry is what moves the country, this is
taken as a window of opportunity to
the right time to help the industry and
reflect and rethink strategies to succeed,
society by putting a grain of sand in what
life is full of challenges and this is one of
touches everyone from their trenches.
them that must be overcome.
It is time to put the best skills at stake, be
The
creative and use digital platforms, they
synergies, this will be what strengthens
are
and
undoubtedly
tools
that
already
existed, however they were not used and now is the opportunity to start using them to be able to connect with our clients and colleagues most of the time.
sum is
the
of
wills
generates
guideline
to
positive
keep
forward and keep walking the path.
moving
PANEL 3 - WEDNESDAY APRIL 15, 2020
PAGE 04
"DESPOLOME OF THE PRICES OF OIL. CRISIS IN THE MEXICAN OIL INSTRUMENT. HOW TO FACE THIS CRISIS IN MEXICO?"
PARTICIPANTS Moderator:
TOPICS
Engineer.
Alfredo
García
Mondragón - CEO - Siete Energy
1. What should Mexico do in light of the situation in which it finds itself? 2. Is it time to extract to refine or to
Engineer. José Friedrich García Mallitz Undersecretary Promotion
and
for Attraction
Investment -
SEDEC
Tabasco
store? 3. How to operate within a pandemic scenario? 4. How can the cost of operating Pemex be
Engineer. Merlín Cochran - General Director - AMEXHI
lowered to reasonable levels? 5. In the face of the health crisis and the
Lic. Larry Rubin - President - American
lack of resources of Pemex, how do you
Society
see it affecting production in Mexico in
Lic.
Diana
María
Pineda
Esteban
Partner - González Calvillo S.C.
-
the short term?
PANEL 3
PAGE 05
The COVID-19 pandemic and oil prices put
This global scenario landed in Mexico
the Mexican oil industry in one of the
invites companies to be very cautious
most complicated scenarios to reestablish
regarding the risk scenario and to assess
investments and operations as planned.
where
they
are
going
to
focus
investments. Although the main focus is Mexico, the global
panorama
that
influences
the
The impact of COVID-19 has impacts on
current circumstances of the oil industry
the
in Mexico has to be analyzed a bit, there is
bottlenecks, so it is necessary to continue
a process of over-supply of hydrocarbons,
looking for how to navigate, operate,
specifically motivated by the pandemic,
maintain suppliers, among others, so that
China was the main country affected, it is
the
the main consumer of oil, having outside
commitments .
this
main
consumer
seriously
supply
industry
chain,
can
there
carry
are
out
many
all
its
affects
prices.
The best strategy for Mexico would be to store all the oil the country produces and
"Mexico as a country has to become more
sell it more expensive, a strategy they
selective in terms of the resources it will
have used in other countries.
want to exploit in the short and medium term, to make the investments it will make more efficient, to look at what type of crude oil, quality, costs, and how It intends to carry out, whether it will only be an investment by Pemex as the main banner in oil production in Mexico or if it will share the financial costs with the private sector and the opportunities that it will present to them”, said Lic. Diana María Pineda.
"Mexico as a country has to become more selective in terms of the resources it will want to exploit in the short and medium term, to make the investments it will make more efficient, to look at what type of crude oil, quality, costs, and how It intends to carry out, whether it will only be an investment by Pemex as the main banner in oil production in Mexico or if it will share the financial costs with the private sector and the opportunities that it will present to them” - Lic. Diana María Pineda.
PANEL 3
PAGE 06
"You have to find a different Energy Policy,
One of the challenges will be to continue
you have to continue attracting investment,
exploring
although right now is not the time to sell, if
demand while still being the engine that is
it is time to continue long-term extraction
today the oil sector in Mexico for the
projects”, said Lic. Larry Rubin.
creation of companies and the generation
and
producing,
anticipating
and recovery of jobs. The economy will rejoin soon, however the decline will continue and Mexico must be
When the subject of the pandemic ends,
in a different environment.
the economy must be relaunched and if demand increases, it is necessary to have
If we look at history we can see that these
the infrastructure that was planned, this is
situations are cyclical and the industry is
also a capital decision, if Mexico will have
used to it and has known how to handle it
the available capital to continue investing
in the past, the additional issue that we
or falling to the private ones, in addition,
have is the part of uncertainty on the part
to analyze the speed at which association
of demand, we are facing a situation that
contracts
will depend a lot on how each country
investment, so that when the commercial
handles its epidemiological control.
part is opened in Mexico, you have the
can
be
made
to
ensure
legal instruments with those investment "It
is
a
critical
moment
for
all
oil
companies and for countries like Mexico
engines
to
get
out
of
this
economic
situation in which Mexico will fall.
that we have one of the strong revenues and one of the most important development
Mexico has a great opportunity, it is still
engines, which is the hydrocarbon sector,
attractive, the Gulf of Mexico is very
which is why they have to consider short
relevant,
and long-term strategies term”, mentioned
country to take advantage of this and
the Engineer José Friedrich García.
make it more productive and efficient.
however
it
is
time
for
this
"It is a critical moment for all oil companies and for countries like Mexico that we have one of the strong revenues and one of the most important development engines, which is the hydrocarbon sector, which is why they have to consider short and long-term strategies term” - Engineer José Friedrich García.
PANEL 3 The
PAGE 07 retaining
We have to work together to guarantee
investments is very important, and it has a
issue
of
this investment security, retain that which
lot to do with legal security, the security
is
that can be given to the investor in the
compete with those future investments.
matter
Mexico
that
attracting
their
and
investment
will
be
already
in
will
protected in the parameters in which it
competitive
was offered. In addition, they must be
investments.
Mexico have
side
and
to to
be
show fight
able its
for
to
most those
provided with legal security through the implementation of the mechanisms that
"It
the
impacts are not immediate, when you stop
federal
designed
government
through
the
has
recently
agreements
for
is
important
investing
you
to
have
highlight an
that
impact
in
the the
suspensions of non-essential activities,
medium and long term, it is true that the
this must be throughout the entire public
rounds are not a priority, however it is not
administration
understands
production
hydrocarbons
supply
of
considered
of
petroleum an
essential
the
an issue that you want to remove from the
and
the
table�, commented the Engineer Merlin
products
is
activity,
as
that
determined by the Health Council.
Cochran. It is a complicated situation for Mexico, especially
since
Pemex
is
the
most
all
of
Latin
"We have to see regulators such as CRE,
vulnerable
ASEA, CNH, SCT, among others, acting
America, since it has the most difficult and
accordingly,
weak capital and liquidity structures in
that
they
are
pending
production not to be slowed down, grant
company
in
the entire region.
permits, authorize insurance records and allow those activities to continue", Lic. Diana MarĂa Pineda commented.
"It is important to highlight that the impacts are not immediate, when you stop investing you have an impact in the medium and long term, it is true that the rounds are not a priority, however it is not an issue that you want to remove from the table� - Engineer Merlin Cochran.
PANEL 3
PAGE 08
Today we are seeing a 30% drop in
We have to be prepared for a totally
consumption and although the economy is
uncertain future. Decision making will
reactivated in the short term, there is an
play a very fundamental role, today more
over-inventory of hydrocarbons in the
than ever the federal government needs
market. With this conjuncture the issue of
investment.
oil will not be fixed once the economy starts to move globally, the oversupply will be there, for this reason Mexico will have to see what it will do in the coming months, particularly with this oversupply
COMPLETE PANEL www.expoilandgasmx.com/expo-virtual
that exists and how it will be managed to make it attractive for investment, since
*Replays of the panels are available on
the oil companies are with less flow and
our
less capacity to invest, for this reason
Alliance.
Mexico is facing a rather complicated situation. In conclusion, it must be understood that today the oil companies that want to invest in Mexico have less capacity to do so, which is why Mexico has to be more attractive.
YouTube
channel
Oil
and
Gas
PANEL STATISTICS
PAGE 09
4,370 IMPACTS 4,370Â impacts that entered through different channels, which entered an average of 1.893 times with a duration of 00:40:59 per user.
BUSINESS TABLE DIARQCO GROUP
PAGE 10
BUSINESS TABLE DIARQCO GROUP
Engineer
Ricardo
de
Jesús
García
Guerrero - Director of Field Development Mayacaste Oil & Gas S.A.P.I. de C.V. Diarqco Group Mexican and foreign operators have to adapt
to
market,
participate working
in based
the
national on
the
corresponding objectives. In the part of the oil industry in Mexico, it is known that according to the Energy Reform there are at least 17 countries that through their different
operators
different projects.
are
working
on
BUSINESS TABLE DIARQCO GROUP
PAGE 11
In a state scenario in which Mayacaste Oil
Diarqco Group business opportunities
& Gas is located, the winning operating company of contractual area number 13
They are focused on the production of the
Mayacaste, it is known that the state of
contractual area, finally they are in a
Tabasco is an oil and gas producing state
round
par excellence.
guidelines
in
which and
they
have
compliance
certain
with
the
authorities, in this case with the National Facing the situation we are going through,
Hydrocarbons
Diarqco Group shares the actions it is
they have committed certain activities
developing.
such
as
Commission,
scheduled
major
with and
whom minor
repairs. for the second semester of this Shares being generated by Diarqco Group 1. Understand that successful companies
year. "We have the resources to detonate these activities, this is with money that we had
have to make long-term plans. 2. Efficiency in the way of producing and
budgeted
in
order
that
the
production
producing in a rationalized way, not
scenarios will meet in the next few months
stopping production but producing in a
with a slightly negative price that we had
moderate
already planned”, said Engineer Ricardo
way
to
continue
counting
with cash flow, hoping that in the coming months the price will stabilize according to the needs of investors and seeking
financial
and
economic
stability, that is, preserving liquidity and knowing how to deal with debt. 3. Focusing
on
working
hand
alliances,
especially
in
with
hand
the
government and private companies, the only way to get out of this crisis is to work together and try to spread the risk, in order to increase productivity.
de Jesús García .
BUSINESS TABLE DIARQCO GROUP Diarqco
PAGE 12
Group
synergies
with
is
open
other
to
generate
"These are moments that as a company we
that
need to have the highest efficiency, it is
require to detonate projects either as
important to share with you that it is a
suppliers or jointly in activities related to
time to cheer ourselves up, the market has
the
always
exploration,
companies
extraction
and
commercialization of hydrocarbons.
been
variable,
it
has
been
complicated lately, however the situation at this time of the pandemic and the war
To
have
contact
through
with its
Diarqco
Group
of the prices has given us to attend to that
website
we must foresee, organize and readjust
www.grupodiarqco.com
our plans, we have to be present in the market
supporting
our
country
to
As for the parameters to be a reliable
continue in force in the market ”, pointed
supplier of this company, for Diarqco
out Engineer Ricardo de Jesús García, thus
Group it is of utmost importance that even
closing the talk.
in these situations there are no excuses to provide quality services, both machinery and personnel.
REPETITION www.expoilandgasmx.com/expo-virtual
*Replays from virtual Business Tables are avaliable on the Oil and Gas Alliance YouTube channel.
STATISTICS
PAGE 13
5,431 IMPACTS 5,431 impacts that entered through differente channels, which entered an average of 1.987 times with a duration of 00:15:52 per user.
OUR SPONSORS
PAGE 14
SPONSORS We extend a heartfelt thanks to those who make the first Virtual Oil Expo in Mexico possible, who also join our #VaPorMéxico campaign to move the Mexican oil industry forward.
QUESTIONS AND COMMENTS If you have any questions through our Twitter account @oilgasalliance, you can ask the panelists questions. Whenever possible, they will respond within 12 hours of the panel.