Oil and alternative energies

Strategy + Innovation Is what will always transform the energy industry APRIL 1 TO JUNE 5, 2020

OFFICIAL MEDIA

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PANEL 5 - WEDNESDAY APRIL 29, 2020

"OIL AND ALTERNATIVE ENERGIES" PARTICIPANTS Moderator: Master Selene González - Coordinator of the External Affairs Committee - AMEXHI

Lic. Arturo Carranza - Analyst of the Energy Sector Engineer Patricio Gutiérrez - Chairman of the Board of Directors - Grupo IDESA Lic. Israel Hurtado - Director - ASOLMEX

TOPICS 1. Renewables are the future of Mexico 2. Renewable energies are going to be the backing of what we are facing today 3. What will happen to natural gas?

4. How does the petrochemical sector play in this transition?

5. How do you conceive of your participation in this matrix combination?

6. What is the ceiling that Mexico has in terms of technology today?

7. How clean is renewable energy?

8. How does petrochemical, Oil and Gas coexist with renewables?

9. What strategies do we have to make oil and gas cleaner to reduce its emission?

"Oil and alternative energies" In the last 50 years, global energy demand has tripled and its trend has been increasing, but due to the arrival of COVID-19 and human behavior, it has been affecting energy demand and a series of effects have been seen they have taken by surprise. There are approaches where it is believed that this crisis may be the opportunity to migrate faster to clean energy, this would be a desirable condition to modify the energy matrix at the global level, this to gradually decrease productions in the Oil and Gas sector.

We are currently 7.8 billion inhabitants in the world, of which 2 billion do not have access to energy and 2.6 billion people cook with charcoal inside their homes, implying health risks, that is why we recognize the problems that are they have in society, taking into account whether renewable energies are going to be the answer to the crisis they are facing today. Speaking of Mexico, the topic of renewable energy or clean energy was thought about the future, but it was not seen as a gradual matter as it is visualized at this time, some years ago Mexico began to work with wind energy and later in 2013 it began to generate solar energy with large-scale solar plants that are generating between 5 GW, this shows that there is a demand and growth issue.

"There is a growth in demand, approximately 3% per year, each year we have to be considering this growth for our generation plans for the national electricity system, in addition, 2% of the population in Mexico does not have access to the electricity grid�, Lic. Israel Hurtado stated.

"Oil and alternative energies" Mexico has the goal of producing 35% of solar energy by 2024, before the arrival of this crisis it was impossible to meet it, but now it is possible to reach the goal. One of the ways of reaching the population that does not have access to electric energy is through distributed generation, installing roof panels, this is totally environmentally friendly and also economically competitive, this allows Mexico to become a consumer and generator energy, since it has great potential and beneficial conditions, 80% of the territory has optimal solar radiation. It cannot be denied that the main input in the world is hydrocarbons and there are different hydrocarbon generation inputs that are more economically and environmentally viable. The governments and authorities that are dedicated to the analysis of the implementation of Public Policies and regulation have to see renewable energies and incorporate them into generation energies since this may bring about a failure to meet goals as a consequence in the future, one of them being change climate.

"The World Bank estimates suggest that the price of gas is 25% in 2020 compared to 2019, the World Bank gives a value of 2 dollars per million BTU to natural gas in 2020 and will recover slightly towards the 2021�, mentioned Lic. Arturo Carranza.

North America will continue to record the lowest and most stable prices, regardless of whether there will be a reduction in the production of natural gas in the United States, as a result of the situation that was generated in the oil industry and the health crisis. Natural gas must be used and the advantages that the country has for being next to the main producer country worldwide to transition to renewable energies, since they are a bet to get out of the economic crisis faster and build a new energy reality, both in Mexico and in the world, but you have to find that way to break the lack of structure to invest in the country and be able to extract natural gas and have our own energy input.

"The transition and the use of alternative, renewable and clean energies must be used, that should create the best balance since not only can renewable or clean energy be used, because both oil and natural gas are important from the point of view of given that it is seen, they are no longer the cleanest energy sources, but if it is used to produce raw materials and that they are used in daily life, it is important to obtain the balance of oil and gas as energy and as an input for derivatives �, Engineer Patricio GutiÊrrez

affirmed.

Any generation of energy and industrial process will bring an impact to the environment to a greater or lesser extent, there are still issues to resolve regarding the environmental impact. The petrochemical industry and renewable energies work together since they do not need fossil energy, zero impact does not exist, but what can be achieved is to generate the best impact on the environment.

Decision-making helps to build the future for renewable energy, one of the feasibilities that can be given to hydrocarbons in the future is to bet on research, technology and development, which are included in the budget to develop processes of production more in line with the needs of the future. Mexico has great potential in hydrocarbons such as wind and solar material, which is why it must bet to build in the future.

In conclusion, Mexico's natural resources should be used in the best way for the benefit of society and with the best possible impact on the environment, and during this search see how to make the best combination of renewables with fossils.

This contingency has achieved a pause in benefit of nature, it is time to reflect, where we are going as a society and what has been done, this is a cycle that must be changed. The search for a new economic and energy reality offers an option to carry out timely, far-reaching actions that allow us to move towards a more reliable and secure diversified energy system, which is not so volatile and to that extent can support the growth of the global and national economy.

COMPLETE PANEL www.expoilandgasmx.com/expo-virtual *Replays of the panels are available on our YouTube channel Oil and Gas Alliance.

PANEL STATISTICS 4,974 impacts that entered through different channels, which entered an average of 1.244 times with a duration of 01:01:33 per user.

Business Table Energy Agency of the State of Puebla

Investors will find in the Energy Agency a capable and passionate team on the subject, seeking energy and social well-being in a project that adds up a lot.

Business opportunities and projects that it is promoting in the state to trigger investment and generate opportunities for the energy industry:

The State of Puebla the most valuable thing it offers is human capital, today the economic transition is to talent and it shows in the orange industry. The project that the Secretary of Economy has in the hand of the Governor of Puebla will greatly boost energy.

In terms of energy, Puebla has large projects such as:

Lic. Rodrigo Osorio DĂ­az - General Director - Energy Agency of the State of Puebla

The Necaxa dam complex that was once world renowned In the Sierra Norte there is capacity in water energy In the center of the state and the Sierra Negra there is the ability to have photovoltaic projects due to

Starting from the decree of November 27, 2019, a few

its

weeks ago the Energy Agency in the State of Puebla

photovoltaic parks

was inaugurated, which is an organization of the energy sector in the state that supports investment material on the subject of energy, they also carry out strategic projects to bring energy and obtain economic

development.

They

also

manage

development trusts for strategic projects, as well as social welfare trusts for the state, granting links to investors with different factors in the sector. The main objective of the Agency is to attract investment, providing basic and advanced information on the state and with the support of links from the federation, states and municipalities, so that the projects are not only economic but also social.

very

cathartic

geographic

model

for

To the south of the state is the strip for wind projects, where there are already two farms and a developing park

REPETITION www.expoilandgasmx.com/expo-virtual

They have geothermal energy.

*Replays from virtual Business Tables are available

Work on a proposal for the development of

on the Oil and Gas Alliance YouTube channel.

vehicular natural gas Opportunity areas in gas pipelines and virtual pipelines Puebla has great power generation and is an important factor in making decisions, which is its node, it contains a great attractive rate and, since it has

a

healthy

node,

the

projects

are

more

economically efficient. They have a deficit of 1.3 generation tables in the state.

Geographically it will have great connectivity, for example, two important railways, since Ferromex have important projects for the distribution of hydrocarbons.

Puebla will create an energy improvement law and this brings together suppliers, supporting the conversion of gas stations.

The transition is to natural gas, you must migrate from LP gas to natural gas today, the economy is dictating when there is a negative molecule in costs and there is competition, especially when there is a tragedy it is a way to get ahead.

Puebla is a matter of investment, the government is willing to make a relationship with investors and the opportunity will be obtained to invest in the sector that interests them.

STATISTICS 5,791 impacts that entered through different channels, which entered an average of 1.016 times with a duration of 00:12:43 per user.

Our Sponsors We extend a heartfelt thanks to those who make the firts Virtual Oil Expo in Mexico possible, who also join oir #VaPorMĂŠxico 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.