The economic crisis in Mexico due to COVID-19 and its consequences on energy consumption
What do we need in each market?
Hydrocarbon market. Eliminate the prejudice of “sovereignty” based on a political ideology linked to energy. Hydrocarbons will be the basic primary energy for more than four decades, but it will depend on how it will be used depending on the technologies that are in place to avoid contaminating or rejecting pollutants or heat into the atmosphere to the environment where they are used.
Crude oil is used for two things: to be sold abroad and / or within the local market, and to be sent to refineries for transformation. In Mexico, 60 and 70% of the Mexican export mix is sent to refineries in the United States, with the main buyers in volume starting with Valero, Shell, Chevron, Phillips 66.
About 80% of the crude in the world is used to generate transportation fuels and a large part of the energy rejection comes in the form of heat due to bad combustion in the engines. There, many countries have improved the quality of these by adding additives such as oxygenates for performance, they have eliminated a greater amount of sulfur as in diesel and fuel oil, and they have created some ecological type companies (Diamond Green Diesel).
Natural gas is used for the petrochemical, fertilizer and electricity generation industries, which will have potential growth from 2030, derived from electrification in all human activities.
A network structure of the interconnects that helps maintain the reliability of the power system by providing multiple paths for power to flow and by allowing generators to supply electricity to many load centers. Creates Regional Transmission Organizations (ORT) that operate electric power systems.
CENACE confirms that it is an independent and impartial operator of the network, which has no economic interest in any individual segment, guaranteeing fair and transparent access to the transmission network and the transaction market.
The new energy market is no more than 5 years old and served to mutate cognitive monopolies (they helped create the foundations of infrastructure and the certainty of having energy for the nation) open to investment.
Editor’s note: Ramses Pech is an economics and energy industry analyst. He is a partner of Caraiva y Asociados-León & Pech Architects. Follow him on Twitter and / or LinkedIn. The opinions in this column belong exclusively to the author.
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