Petroleos Mexicanos (Pemex) intends to reduce its methane emissions by 30% by 2030, but this environmental commitment could lead to a significant decrease in its fiscal contribution, directly affecting government revenues.
Since March, Pemex approved an ambitious sustainability plan for 2030, focused on reducing its methane emissions by 30%. However, this environmental effort could have a negative impact on the company’s contribution to the public purse.
Pemex government revenues decrease due to methane emission reductions
Specialists warn that government revenues from hydrocarbon exploration and production could decrease by 84% in a zero net emissions scenario. In this context, Pemex’s share of total government revenues could fall dramatically from 18% to 3%, according to an analysis by Carbon Track, a London-based organization.
In addition, Fernanda Ballesteros, director for Mexico of the Natural Resource Governance Institute, emphasized that more than 70% of the industrial gases that cause global warming are emitted by oil, gas and coal extracting companies. These companies are at the heart of global efforts to produce cleaner and less polluting energy.
The challenge of decarbonization for Pemex
Ballesteros and Andrea Furnaro, authors of the report “Pemex and the Energy Transition: Timely Responses to Growing Challenges“, indicate that Pemex is not well prepared to face a scenario of lower demand for hydrocarbons. Although its 2022 business plan acknowledges the risks associated with the energy transition, it does not specify how it will address them. In March, Pemex presented a sustainability plan focused on reducing emissions and emissions reduction, but does not emissions, but does not delve into the risks related to falling oil prices and demand.
The report ranks Pemex 11th among the 58 state-owned companies most exposed to the risk of the energy transition. State-owned oil companies, which account for 55% of world oil production, are moving more slowly in their decarbonization plans compared to the major international oil companies.
Future of state-owned oil companies
State-owned oil companies, in addition to their commercial objectives, seek to guarantee access to energy and economic development. However, they are subject to political cycles that make long-term planning difficult.
The transition to cleaner energies implies challenges for Pemex and other state-owned oil companies and opportunities to innovate and diversify their sources of income, betting on renewable technologies and energy efficiency to ensure their future viability in a changing market.
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Source: oilandgasmagazine
Photo: Shutterstock
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