Energy Market
Overview
Energy Market
USD Million
2010 |
2011** |
2012 (estimated) |
2013 (estimated) | |
Total Market Size |
9.781.5 |
10,159.3 |
10,543.7 |
10,944.9 |
Total Local Production |
3,974.6 |
4,082.9 |
4,184.5 |
4,288.8 |
Total Exports |
11,849.9 |
12,100.2 |
12,355.9 |
12,617.1 |
Total Imports |
17,656.8 |
18,176.6 |
18,715.1 |
19,273.2 |
Imports from the U.S. |
11,904.9 |
12,202.3 |
12,487.2 |
12,779.1 |
Exchange Rate: 1 USD* |
12.34 |
13.86 |
13.90 |
14.00 |
Oil and Gas Market
USD Million
2010 |
2011** |
2012 (estimated) |
2013 (estimated) | |
Total Market Size |
6,151.5 |
6,456,7 |
6,767.1 |
7,092.7 |
Total Local Production |
1,924.6 |
1.991.9 |
2,051.7 |
2,113.3 |
Total Exports |
1,329.9 |
1,369.8 |
1,410.9 |
1,453.2 |
Total Imports |
5,556.8 |
5,834.6 |
6,126.3 |
6,432.6 |
Imports from the U.S. |
3,954.9 |
4,093.3 |
4,216.0 |
4,342.5 |
Exchange Rate: 1 USD* |
12.34 |
13.86 |
13.90 |
14.00 |
Electric Power Sector
USD Million
2010 |
2011** |
2012 (estimated) |
2013 (estimated) | |
Total Market Size |
3,630.0 |
3,702.6 |
3,776.6 |
3,852.2 |
Total Local Production |
2,050.0 |
2,091.0 |
2,132.8 |
2,175.5 |
Total Exports |
10,520.0 |
10,730.4 |
10,945.0 |
11,163.9 |
Total Imports |
12,100.0 |
12,342.0 |
12,588.8 |
12,840.6 |
Imports from the U.S. |
7,950.0 |
8,109.0 |
8,271.2 |
8,436.6 |
Exchange Rate: 1 USD* |
12.34 |
13.86 |
13.90 |
14.00 |
*Central Bank’s Statistics and Projections (Banco de Mexico).
** Based on statistics available from January to November 2011 (11 months)
Sources of information: BANCOMEXT, -Mexican Import/Export Bank statistics, Secretary of Economy Statistics; Census Bureau, U.S. Department of Commerce or Global Trade Atlas State Exports, November 2011; information and interviews with PEMEX, CFE, and SENER officials; 2012 PEMEX and CFE Budget; interviews with oil and gas contractors, members of the College of Petroleum Engineers, and representatives of U.S. companies in Mexico.
As illustrated in the energy market chart above, in 2012 and 2013, the demand for imported energy-related equipment and services will increase by approximately 2.9 percent while U.S. exports to Mexico will grow by an estimated 2.3 percent during the same period of time.
With respect to the oil and gas chart above, in 2012 and 2013, the demand for imported oil and gas equipment and services will increase by approximately 4.9 percent while U.S. exports to Mexico will grow by an estimated 3.0 percent during the same period.
Oil and gas infrastructure will continue to be a priority for Mexico’s federal government during the period 2012-2013. The state-owned energy company, Petroleos Mexicanos (PEMEX), has been granted a 2012 budget of USD 26.9 billion for new infrastructure and the maintenance of existing refineries, oil and gas pipelines, etc. (see “Opportunities” below)
On the electric power chart, in 2012 and 2013, the demand for imported equipment and services for this subsector will increase by approximately 2.0 percent while U.S. exports to Mexico will grow an estimated 1.9 percent during the same period.
Best Prospects/Services
Energy sub-sectors: Oil and Gas (OGM), PEMEX will continue to make large investments in oil exploration and production in order to maintain falling production levels. PEMEX already relies heavily on imported products and services and is expected to continue to invest heavily in developing deepwater reserves as well as advanced extraction of maturing onshore fields. Also, natural gas capture at well heads is an opportunity for US companies.
Energy sub-sectors: Electric Power (ELP), Federal Electricity Commission (CFE) will continue to make large investments in infrastructure to increase the capacity of the electricity system, in automation to modernize the infrastructure of Mexico’s Central Area, and in Smart Grid (an intelligent network is necessary to secure energy efficiency; however, the strategy and the projects related to Smart Grid are still being analyzed). CFE’s priorities for the years to come are clean energy sources and energy efficiency.
Opportunities
A number of major projects will drive investment in the sector and offer US companies opportunities either as contractors, sub-contractors, or suppliers of equipment/technology:
Oil Exploration and Production:
53 exploration wells in the Chicontepec area with a budget of US$530 Million;
6 mature fields exploration wells in the North Region with a budget of US$220 million
10 deep water exploration projects (including the Perdido Area) with a budget of US$300 million
40 offshore platforms on the Gulf of Mexico with a budget of US$ 1 billion.
Shale Gas Exploration:
10 wells in the State of Coahuila with a budget of US$150 million:
Pipe Rehabilitation and New Pipelines:
600 km natural gas pipeline project from Veracruz to Tamaulipas and Nuevo Leon with an estimated budget of US$700 million;
2,000 new kilometers of gas pipelines to link U.S. natural gas suppliers and Pemex gas pipelines system for States on the Gulf of Mexico and States on the Pacific.
Refineries:
Construction of the new refinery in Tula and reconfiguration of the Salina Cruz refinery.
Others: Pemex will increase the demand of Christmas Trees Control Systems (offshore); Wellheads; Drilling Rigs; Valves systems; Well shooting etc. The estimated budget is US$90 million.
Electrical Power System
The most updated projects included in the long term investment program (Programa de Obras e Inversiones del Sector Eléctrico – POISE), can be found at www.sener.gob.mx/portal/Default.aspx?id=1453
The most updated CFE public tenders and contracts, can be found at www.cfe.gob.mx/proveedores/Paginas/Proveedores.aspx
Energy Efficiency
The Sustainable Lighting Program (Programa de Luz Sustentable) from the Ministry of Energy, started in 2011 and will continue in 2012. This program aims to replace incandescent light bulbs with fluorescent light bulbs, which will represent 4,169 GWh of savings in energy consumption by the end of 2012. The official Mexican Standard (NOM) associated to this program, which establishes the minimum requirements for efficient light bulbs used in the residential, commercial, services, industrial, and public areas is NOM-028-ENER-2010. To learn more about this program, visit www.luzsustentable.gob.mx
Resources
Secretariat of Energy: http://www.energia.gob.mx
Mexican oil company- PEMEX: http://www.pemex.gob.mx
Federal Electricity Commission: http://www.cfe.gob.mx
Energy Regulatory Commission: http://www.cre.gob.mx
College of Petroleum Engineers of Mexico: http://www.cipm.org.mx
National Infrastructure Plan: http://www.infraestructura.gob.mx
Nat’l Commission for the Efficient Use of Energy http://www.conuee.gob.mx
For more information please contact:
Mr. Francisco Ceron, Senior Commercial Specialist (Energy)
Commercial Service, U.S. Embassy in Mexico City
Miguel Vazquez, Commercial Specialist (Renewable Energy)
Commercial Service, U.S. Embassy in Mexico City
