In the most recent auction in Mexico, 19 out of 29 bids were awarded, sharply higher than the seven expected by the government. Officials estimate that the awarded blocks could eventually attract $93 billion in investment.
Harvey’s effects on the nation’s energy infrastructure are wide-ranging, forcing a large swath of refining capacity to shut.
The global oil markets have been dealing with a crude supply glut for sometime, but now the surplus has shifted to refined products. With high stocks of diesel and gasoline worldwide, oil prices, now trading in the mid-$40s, could move lower.
With U.S. demand surging and exports on the rise, this summer has been a good time to be a refiner.
Oil prices, which have sunk to fresh six-year lows, are on their longest losing streak in about thirty years, and the bear market is not over yet: The coming months offer more threats to the crude market, on top of the ongoing surplus in supply.
For most refinery operators in the U.S., emissions regulations can seem like an ever-tightening noose. Standards are becoming increasingly stringent forcing operators to go on hiatus and replace existing equipment with new, low-emission burners.