{"id":11812,"date":"2015-09-04T08:47:00","date_gmt":"2015-09-04T13:47:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11812"},"modified":"2015-09-04T08:47:00","modified_gmt":"2015-09-04T13:47:00","slug":"the-pena-nieto-bottom","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11812","title":{"rendered":"The \u201cPe\u00f1a Nieto Bottom\u201d"},"content":{"rendered":"<h3><strong><a href=\"http:\/\/wolfstreet.com\/2015\/09\/04\/pena-nietos-bottom-mexicos-oil-reforms-fiscal-meltdown\/\" target=\"_blank\">The \u201cPe\u00f1a Nieto Bottom\u201d<\/a><\/strong><\/h3>\n<p><b><i><\/i><\/b>When Enrique Pe\u00f1a Nieto\u2019s government pushed a historic energy reform bill through the Mexican congress in 2013, it was hoped that it would serve not only to privatize but also modernize Mexico\u2019s state-owned Pemex and allow it to compete with giants like Exxon. However, the one thing the government seemingly hadn\u2019t counted on was the collapse in global oil prices.<\/p>\n<p>At the time, Brent oil prices were sitting pretty at around $110 per barrel. It was assumed those prices were there to stay; instead, they have plummeted to $50 per barrel.<\/p>\n<p><b>Pe\u00f1a Nieto Bottom<\/b><\/p>\n<p>Despite the government\u2019s constant denials, the pain is beginning to show. The first auction of off shore oil leases, in July, was an unmitigated disaster, with only two of 14 exploration blocks awarded, both going to the same Mexican-led trio of energy firms.<\/p>\n<p>Oil is no longer a seller\u2019s market. The financial arithmetic facing a potential investor has been turned on its head by the recent collapse of oil prices. As a result, many projects that were a slam- dunk just a year ago have become distinctly dicey propositions. At the same time fierce, competition among oil producing nations continues to drive prices southward.<\/p>\n<p>As Bloomberg\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-08-31\/brazil-and-mexico-vie-for-cash-from-oil-explorers-in-price-rout\" target=\"_blank\">reports<\/a>, Brazil and Mexico are preparing to compete for investments from some of the same oil majors when they hold auctions only a week apart at a time that the price rout is prompting spending cuts:<\/p>\n<p>\u201cIn times of low oil prices, all companies need low costs and promising returns,\u201d John Forman, a consultant and former director at Brazil\u2019s oil regulator, said in an interview in Rio de Janeiro. \u201cBrazil and Mexico will compete for resources and low-cost projects will be key.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The \u201cPe\u00f1a Nieto Bottom\u201d When Enrique Pe\u00f1a Nieto\u2019s government pushed a historic energy reform bill through the Mexican congress in 2013, it was hoped that it would serve not only to privatize but also modernize Mexico\u2019s state-owned Pemex and allow it to compete with giants like Exxon. However, the one thing the government seemingly hadn\u2019t [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[90,5660,4390,517,588,3163,1775,2174,4255],"class_list":["post-11812","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-brazil","tag-don-quijones","tag-exxon","tag-mexico","tag-oil","tag-oil-majors","tag-oil-price-collapse","tag-pemex","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11812"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11812\/revisions"}],"predecessor-version":[{"id":11813,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11812\/revisions\/11813"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}