The KPMG Global Energy Conference gathered industry colleagues to exchange ideas about the challenges facing the energy sector.
Andy Steinhubl, Principal Energy and Chemicals Strategy Leader at KPMG (U.S.) moderated the panel “National Oil Companies meeting the challenges of today’s energy dynamics”. He leaded the discussion about the changing role of the NOCs in the global energy landscape, its strategies and their view of the long-term outlook for hydrocarbon future.
PPI’s President & CEO, Salvador Escobedo explained the changes in PEMEX due to the Energy Reform. He highlighted that two mayor paradigms shifted. First, that PEMEX changed its focus on profitability instead of volume. As a State owned company, the goal was to produce as much as possible, the driver was the volume of crude extracted. When PEMEX became a Productive State Enterprise, the driver changed to profitability. PEMEX would no longer extract crude, if extracting it was more expensive that the price of the barrel.
The second paradigm is that PEMEX is now facing competition. It is no longer a national monopoly. This is pushing PEMEX to become more efficient, reducing costs and optimizing its manpower, Salvador stated.