Oil Daily | Mexico Tightens Control on Pemex; Russia to Cut Oil Revenue Reliance; Exxon Boosts Guyana Output

【Latest Oil Policies】

Mexico's parliament passed a bill granting the president more control over Pemex and CFE, aiming to prioritize social and economic objectives. Critics warn this could deter investment in transmission projects, affecting Mexico's energy transition. Despite increased government control, collaboration with private firms remains encouraged to develop oil and gas resources.

【Oil-Producing Countries Dynamics】

Russia aims to reduce reliance on oil and gas revenues, targeting a drop in their budget contribution from 35-40% to 23% by 2027. The strategy includes boosting the domestic economy and increasing internal borrowings to mitigate the impact of volatile commodity prices on state income.

China's largest coal company plans a $24 billion facility to convert coal into petroleum products by 2027, using wind and solar energy. Despite a coal surplus and declining profits in coal-to-oil ventures, China remains the largest coal producer and investor in renewable energy, aiming to reduce coal's share in power generation.

India's power demand fell during heavy monsoon rains, leading to decreased coal-fired generation. Solar power surged, pushing renewables to a record 13.9% of electricity generation. Despite this, coal remains vital for India's power sector, with expected demand growth and a continued role until storage technologies advance.

【Industry News】

Exxon plans to increase offshore Guyana production by 18,000 barrels per day, pending government approval. Guyana's oil production, managed by a consortium including Exxon, is projected to reach over 1.6 million barrels daily by 2030, with significant reserves making it a key player in the global oil market.

Chevron and other energy companies shut down operations in Tampa due to Hurricane Milton. The hurricane, a potential record-setter for Florida, prompted extensive shutdowns of pipelines and fuel terminals, highlighting the vulnerability of energy infrastructure to extreme weather events.

India's Jindal Power exited a deal with Venezuela's PdVSA, highlighting challenges in Venezuela's oil sector amid political turmoil and sanctions. Efforts to revive Venezuela's oil production face setbacks, contrasting with increasing output in neighboring Argentina under different political leadership.

【Others】

U.S. EV registrations surged by 142% since 2023, but public charging infrastructure grew only 22%, threatening EV sales momentum. A robust charging network is critical for sustained growth, addressing range anxiety and convenience for consumers. The disparity highlights the need for standardized plugs and infrastructure expansion.