U.S.-Mexico Energy Forum: Opportunities & Challenges

– Helps fund the state’s public education through
the Permanent School Fund,
– Provides benefits to Texas veterans, and
– Manages the vast Texas coast.

Commissioner Bush talked about the growing importance of the Texas Delaware Basin, now recognized as a world-class energy source with three billion barrels of oil reserves and 75 trillion cubic feet of liquid gas. He stressed the need to continue protecting coastal areas, which have a population of more than seven million residents, 25 percent of the nation’s refining capacity, and 4,000 petrochemical storage tanks.

Moderator Ismael Berumen of KPMG introduced the three members of the Regional Perspectives panel:

George Baker, editor and publisher of Mexico Energy Intelligence, a historian of Mexico’s energy policies, and an expert on English/Spanish translations and terminologies. Cited several examples of erroneous and misleading translations and usage which have potential impact in critical aspects of the energy sector, especially in Mexico;

Richard Byrnes, chief, Port Infrastructure Office at the Port of Houston Authority, commented on the unprecedented opportunity for deep water ports to help the economy, but that it takes a long time to undertake this type of infrastructure work; and

Patrick Schaefer, executive director, Hunt Institute for Global Competitiveness, University of Texas El Paso, who outlined the regional energy markets in the Paso Del Norte Region, which encompasses the area from New Mexico, Texas and Oklahoma, south to the Mexican States of Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas.

The next panel was focused on renewable energy and energy conservation, moderated by Soll Sussman. The speakers for this panel were:

Rodolfo Rueda Ballesteros of Fundacion Fomento Mexicano and Iberdrola Generacion Mexico, who addressed challenges and opportunities in energy needs of low income communities in Mexico;

Dana Harmon, executive director at Texas Energy Poverty Research Institute, discussed energy solutions for low income communities in the U.S.—especially along the southern border;

Manuel Enrique Sanchez Martinez of VVital Energia and Eduardo Daniel Sanchez Martinez, business development consultant, offered consulting and collaboration for private sector activities related to energy projects in Mexico; and

Erika Benson with the Benson International Group, who described recent solar energy auctions and incentives for developers of renewable energy.

Max Hernandez moderated the LNG, Midstream & Mexico’s Electricity Industry panel. Members of that panel were:

Marcelo Mereles Gras, partner at Hydrocarbon Exchange HCX;

Francisco Guajardo, vice president at Grupo DIDSA;

Fred Hutchison, executive director at our Energy Moment, LNG Allies, Inc., who pointed out that the U.S. had changed from a net gas importer to a net exporter, and that several more large LNG projects are on the horizon; and

Tania Rabasa Kovacks, new business development at the Federal Electricity Commission of Mexico, commented that, with production decreasing and consumption increasing, there are investment opportunities in Mexico, especially for small firms in the midstream and downstream areas.

Jonathan Booe, executive vice president and chief administrative officer, North American Energy Standards Board, commented that NAESB serves as the voluntary industry forum for the development and promotion of standards leading to a seamless marketplace for wholesale and retail of natural gas and electricity;

Jorge Piñon, director, Latin America and Caribbean Energy Program, Jackson School of Geoscience, University of Texas at Austin, addressed opportunities and challenges in university education. He highlighted the need for qualified and experienced professional and technical/trade personnel, reiterating this is the situation along the energy value chain that includes upstream, midstream and downstream in the oil & gas sector, as well as in petrochemicals and electricity; and

Radha Subramani, director, Energy and Economic analysis Division, Natural Resources Canada, spoke about cooperation and mapping initiatives in the three countries and that data quality is improving.

This panel was moderated by Steve Molina, Texas member with Interstate Oil & Gas Compact Commission, and former counsel at Dentons. Panel members were:

Chris Moore, managing director at Moyes & Co., provided background details and results of Mexico’s Round 1.4 deep water leases, characterizing it as “hugely” successful for the country;

William Hunt Buckley, a senior counsel at Haynes & Boone. He noted that Mexico is tackling a process (leases) in three years that the U.S. and other countries have been working at for over 100 years, “…massive paperwork…” he said;

Ernesto Marcos, partner at Marcos y Asociados Infraestructura y Energia, S.C., commented on the unfortunate timing of Mexico’s energy reform, currently facing the challenge of declining oil and gas production and lower prices; and

Gabriel Heller Green, director general of Investor Relations & Promotion, Ministry of Energy, Mexico, who reported on Mexico’s successful Round 1.4, in which a good number of the “majors” participated.