Heavy oil investments to be made by Petróleos Mexicanos

State-owned Petróleos Mexicanos recently announced plans to produce oil investments worth over one billion U.S. dollars. These oil investments will be used for expansion of heavy and extra heavy crude oil output from the Gulf of Mexico. The goal of this venture is to find a system that can implement the design, operation and maintenance of the Electro-Centrifugal pump technology employed by these types of facilities. This technology is used to pull hydrocarbons from the bottom of the sea to the surface. According to Petróleos Mexicanos, it is intended to install the Electro-Centrifugal Pump system in more than 100 oil wells. Apart from this project, it will develop equipment for building both on and below the surface extraction. Investments for this will be made from the current production of crude oil in offshore fields of Campeche, Gulf of Mexico. Chief executive officer Nicolas Saverys has planned to provide large oil investments for new platforms, and is negotiating five new projects.

Nicolas Saverys further announced that the organization sold a couple of liquefied natural gas vessels to an investment company in order to raise the capital needed for this project. Previously, it announced investments in oil worth an estimate $700 to 800 million USD for five new projects under study; in Jamaica it contributed tremendously for conversion of crude oil and LNG to produce electricity. These projects will push gases into the pipelines, and the construction phase of these projects is expected to be relatively quick. They are also seeking partners for the projects, since it is a mid-size company with a market value of only 400 million euros. The company has many projects ongoing, so it has to share resources between them. Figures by Exmar showed that performance of the company’s shares reached a peak six months earlier. Investor response to the problems in Japan and the corresponding increased demand for gas did not affect the performance of the company.

Many shipping companies transporting oil and other fuels made fantastic profits during 2010. Now it is time for industrial players to make high returns, and the efficiency of LPG vessels has increased two-fold. Investors in the United States, before rendering oil investments, should know about the rolling contracts for months in advance, and it is important to understand the crude oil futures contract market. Despite horrible recent performance, the United States Oil Fund may outperform other crude oil prices according to late cycle tracking tools such as the futures price curve. It is expected that the price for crude oil will increase, and this would surely attract a large number of investors and commercial users in the months and years to come.