October 14, 2013
The reoccurring discourse is in delivering energy intelligence for energy secure future galvanizing economic development. The global watch on energy is vita to overview of resource and asset capitalization and stock growth. The analyses on “What Experts Are Looking For Before Investing In Mexican Energy” is keen review on this economy but provides intelligence on structuring and identifying proposed energy strategies.
International Business Times reports news on “Mexico’s proposed legislation to end their state oil monopoly and open the energy sector to private participants may boost oil- and gas-driven transactions in the capital markets, but there are key factors investors should consider,” stated Fitch Ratings.
“Mexico is one the 10 largest oil-producers in the world and the third-largest producer in the Western Hemisphere. The reform aims to transform Mexico’s notoriously corrupt and inefficient energy sector, which has stabilized production at 2.5 million barrels of oil per day as of June 2013, far below peak production in 2004 of 3.4 million barrels of oil per day. Under current law that bans foreign investment in the oil industry, huge tax burdens and the state-run Pemex’s lack of technology and expertise have limited the country’s production.”
Foreign investment or incorporating asset and resource strategies to energy development to the national bottom line is an economic decision. The cost of doing business as normal is trumped by nature of transactional and short term investments yielding high profits sparking new sector growth. The question of allowing foreign investments that in the short term produce profits may not lead to long term sustainability.
The knowledge to consider, “Drilling rigs have traditionally been financed through the syndicated bank loan market, but in recent years, constrained bank balance sheets and a growing supply of newly built vessels have pushed sponsors to tap capital markets for financing.”
Creative sustainable financing are required solutions to driving energy markets. The work of analyst and energy modeling is to form platforms that open growing capital markets and economic development.