Mexico will likely halt oil auctions for at least two years, dealing a blow to its oil industry.
Mexico’s president-elect Andres Manuel Lopez Obrador (AMLO) will reportedly suspend oil auctions for at least two years, according to the Wall Street Journal, with some experts believing that his administration won’t hold any new oil auctions at all during his six-year term. He has also vowed to review the 107 contracts already awarded to companies through auctions over the last few years to check for corruption, although he has said he would not try to invalidate them so long as they check out.
Also, AMLO wants to revise some of the energy laws that govern the oil and gas sector, which could dramatically alter the landscape for foreign oil and gas companies. He long opposed the historic reforms that ended seven decades of state control over the energy sector, although he moderated his position during this year’s presidential campaign. Rolling back the reforms would be exceedingly difficult, requiring a change to the country’s constitution.
Instead, AMLO wants more modest, though still significant, legislative changes. The WSJ reports that he will pursue legislative tweaks that bolster the power of state-owned Pemex, while weakening the regulatory body that has pursued a technocratic approach and presided over the oil auctions over the last three years.
AMLO’s desired changes include allowing Pemex to choose its own private-sector partners, without needing the approval from regulators. Current rules require Pemex to partner with the highest bidder for blocks put up for a farm-out. He wants the government to be able to award Pemex with oil blocks directly. And he wants to make Pemex the sole marketer of oil produced by private firms, the WSJ reports.
These changes would amount to a partial rollback of the energy reforms, re-empowering Pemex and government control over the oil sector. Moreover, as president, AMLO chooses the head of Pemex, granting him a lot of leverage over the company.
“If licensing rounds are canceled and joint ventures are the only vehicle for entry to the country, it reflects a consolidation of power within” Pemex, Maria Cortez, Latin America Upstream Senior Research Manager at Wood Mackenzie, told Bloomberg in an email. ”That could be viewed negatively by outside investors.”
On top of that, the WSJ says AMLO will push to raise local content rules, which would require a higher percentage of domestic involvement in oil projects. That means that if a company like ExxonMobil or Chevron or some other outside entity wants to drill for oil in Mexico, it would need to source a certain percentage of equipment and services from within Mexico. The idea is to capture a greater portion of the benefits of oil and gas development for the country, while also building up expertise for local industries.
However, many of these changes will be loathsome to the international oil companies, who will view them as onerous burdens that inject higher levels of uncertainty into their investments. Oil companies have repeatedly blamed strict local content rules in Brazil for years of cost inflation and delays.
“If all of this is confirmed, it would send a signal that the continuity of the oil opening may be in doubt,” Pablo Medina, an analyst with Welligence Energy Analytics, a research firm based in Houston, told the WSJ in an interview.
Meanwhile, in addition to the legislative changes to the energy reforms, AMLO’s core energy plan consists of pouring billions of dollars back into Pemex for oil exploration, with a particular focus on revitalizing the downstream sector. He wants $2.6 billion to rehabilitate Mexico’s six aging oil refineries, plus more than $8 billion to build a new refinery from scratch. The idea is to cut down or even eliminate gasoline imports from the United States.
Mexico’s oil production has been declining for over a decade, falling to 1.9 million barrels per day recently, down from 3.4 mb/d in the mid-2000s. The IEA sees output falling by another 130,000 bpd this year, due to the aging offshore oil fields, although that is a narrower decline compared to the 235,000 bpd the country lost last year.
AMLO is aiming to boost production by 600,000 bpd over the next two years, which will be a monumental task. If he is to succeed, AMLO is betting that Pemex will lead the way.
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The Oil and Gas sector is still recovering from some difficult times in the recent past and has adapted a high-performing culture to generate more from less. That has also translated to replacing the older, expensive resources to younger, cheaper talents and leveraging the gig workforce.
Thus having a few decades of experience in your kitty might sound like a huge advantage but in reality, this might become a burden if you are in the job market and competing with your younger counterparts, especially in this dynamic energy industry. The reputation of being redundant and lack of acceptance of newer skills can precede you and shroud the recruiter’s decision.
However, there is always a demand for experience in the job market and the top oil and gas companies are in a lookout for personnel, who have relevant prior experiences and are ready to adjust to the evolving changes in this industry.
Upskilling to remain relevant in this industry is crucial for the ageing workforce but when you are seeking a new job, everything zeros down to getting an opportunity to demonstrate your ability to the recruiter.
The first hurdle is to have a cracking resume or curriculum vitae that get shortlisted for the next round.
Here we share some tricks to age-proof your resume and check all the right boxes in a recruiter’s mind within the first 6 seconds of their short attention span.*
1. Be creative to attract attention
The best weapons you have are the skills that were acquired during the long tenure spent in this industry. It can easily become a drawback for your resume if you tend you write extensively about all these skill-sets and fail to understand what the specific job opening demands from its candidates.
It is advisable to select your skills carefully and highlight them with more visuals and fewer words. Use graphs and percentages instead of long sentences to make your resume stand out. Try to feature them on the front page and showcase only the relevant skills for the job you are applying.
2. Downplay on dates
Now, this can be a little tricky but not difficult. Do not unnecessarily highlight personal information like age and if needed move it to an obscure corner of your resume where there are lesser chances of it to be noticed.
While, for some jobs, the academic credentials are necessary to be mentioned, we recommend to feature these on the front page with the degree and university name but try and avoid the graduation dates. The recruiter might indulge in quick math to estimate your age. Also, when you mention the job history, maintain the chronology but avoid mentioning the start and end dates.
Please note that none of the above implies for you to submit misleading information to your prospective employer at any given stage of the recruitment process.
3. Highlight the recent and relevant experiences
There has been a massive shift in oil and gas processes, equipment and technology in the last few decades. Improvements in drilling mechanism, data-collecting sensors, technology to improve worker’s safety, etc. have changed most upstream and downstream jobs.
You might have also gone through this age of transformation but your resume might look dated if you end up mentioning the entire history.
Keep it crisp and recent; bypass mentioning any experience that may not be relevant today and does minimal value-add showcasing your talent for the new job. If you have moved out of oil and gas industry sometime during your career, keep it off the resume unless that experience adds value to the current job opening.
You ideally should be showcasing all the accolades that came your way throughout your professional life. Craft your messaging around mentions about the impact of your performance on the employer’s top-line and bottom-line results.
Having said this, under no circumstance should you use incorrect career or skill information in your resume.
4. Speak the language of the recruiter
Pick terminologies mentioned in the job description and highlight them in your resume. Try to tailor-make the resume to befit the job description and hence easier for the recruiter to understand your relevancy.
Keep working on your resume on a constant basis and it will become an easy task to quickly modify the variable content based on each new application.
5. Provide Social Media Coordinates
Provide the LinkedIn, Twitter and other relevant Social Media coordinates in your resume. There is a high possibility that you will be scrutinized on your social media activity and hence it is good to keep your professional social platforms details updated on your resume.
This also signals about your ability to stay relevant with the time by adopting digital communications.
Update your profile picture and preferably get it done by a professional photographer who focuses to capture your positive attitude and energy.
Maturity and leadership skills come organically to older workforce due to their extensive experience; And half the job-search battle is won if that can be captured in your resume and featured to the potential employers.
While it is discriminating and unethical to deny a job due to your age, there are several instances of biased recruitment in every industry, including oil and gas.
Bonus Tip: It is said your network is your net-worth these days. Connect with other energy sector professionals and share your experience with the community to increase your professional network.
We wish you all the best in your next job search!
The title of this article is the title of a recent three day workshop that was organized by SkkMigas that had apparently been arranged due to the concern that Indonesia has with the ever-growing gap between the demand for oil and what is being produced in the country, as well as the ever-increasing concern about the economics of the country with the spending on infrastructure projects being a concern and development in the natural resource industry not being as expected.
There are other concerns, such as the ever-growing reliance on Pertamina to take over blocks from International companies, to develop existing and hopefully new blocks, or a recent headline: Pertamina sells off shares to stay afloat, or the concern of Pertamina to meet the government’s policy of ensuring the availability of Premium grade fuel at one price throughout the whole country. One senior person from Pertamina said to me recently, we will survive until the election, but what happens after that, who knows.
This makes one wonder, how will Pertamina develop new or existing blocks? How will they carry out the exploration that is needed to meet the subject of this opinion piece which is an interesting title in itself for many reasons. When I was asked about finding Giant Oil & Gas Fields by Badan Geology, I said, Pak, the chances of finding Giant Fields is fairly low, because if they were available they would have been found by now with existing methods of exploration. I was to learn that what they meant by Giant Fields is anything that contains a probable reserve of 500 million barrels of oil, (Giant oil and gas fields = those with 500 million barrels (79,000,000 m3) of ultimately recoverable oil or gas equivalent. Supergiant oil field = holds equivalent of 5.5bn barrels of oil reserves).
This is a different story then, as it is known that there are fields that contain this amount and above, just waiting to be confirmed and exploited, one such field has been known about for several years which contains something in the region of 1 billion barrels of oil, as well as gas and condensate, but due to political and other reasons this has not been developed until now.
The author of this article has written several times that Indonesia does have the potential to be self-supportive in resources, if only the knowledge of the country’s resources was known, sadly to say until now, the potential of the country’s resources is just that, potential. What has become apparent from the workshop organized by SkkMigas is that many people are concerned with the situation, but very few (if any) are prepared to take the risk for exploration, which does include the country’s own banks and entrepreneurs. What does risk mean? Put simply, it means loss of money. In my view, Indonesia is no different to any other country, the people in the country do not like to lose money, so why does Indonesia expect investors from other countries to lose money when they are not prepared to accept the risk themselves?
How to minimize the risk?, how to increase the success rate from 15%?, which is what Pertamina achieved last year for drilling of new wells, although this is not too far below the accepted success rate within the industry which is in the region of 20 – 25% (the normal). These figures can of course be argued about from company to company, but the overall success rate is low, if you were a gambling person, you would unlikely accept these odds. The answer is simple, technology, a technology that has been developed by people of the trade, not by some mad scientist, technology that has been used in different countries with a high success rate. Contrary to believe, Indonesia is no different to any other country when it comes to geology, yes Indonesia has complex geology such as volcanics in Java, deep water in East Indonesia, difficult terrain in Papua where some of the technology that is used today does not allow a detailed exploration survey to be carried out. I can name a number of other countries that have extremely complicated geology that has been successfully explored with technology. The old excuse that the technology has not been used in Indonesia does not wash, how can it be used if people do not want to accept technology readily? It does appear that SkkMigas is waking up, they realize that if they do not adapt to new technology faster, then the situation will not improve.
Technology that we take for granted has come a long way in the past twenty or more years, where did the technology come from? Normally technology comes from someone seeing a problem and asking a simple question, how can we do this better. I was giving a presentation the other day, when someone said, we have not been taught this in University, so how can we believe that this works, where I replied, it has been proven in many other countries with a high success rate, can you as a geologist work in another country, where the answer was “of course we can” where my reply was, if you can do this, why can technology that works in these countries not work in Indonesia? Technology that has been developed by people such as yourself which is based on geology, of course, there was no reply.
The point of this article is that Indonesia appears to be ready to accept technology, although there are still divisions within the government (ESDM) where you have so many different interests, what is required is that one central policy is required for technology and not so many different empires, it should be united.
Most people will accept technology from the medical industry that can save life’s, the same people in the exploration industry are reluctant to accept technology that not only improves the success rate of exploration but will create jobs for people as companies are exploring at reduced costs which in turn relates to reduced risk.
Indonesia does have the potential to meet its energy needs, to meet its goals that are agreed with increased success and reduced costs, as long as people are willing to accept technology and make decisions.
“Baby Giant Fields” are waiting to be discovered.
Oil and Gas industry is considered traditional when it comes to adopting of new technologies or concepts. However, the notion is changing fast. This Infographic covers insights into which technological advancements will shape the future of oil and gas: