Mariano Hernandez Palmeros, nuvoil´s Chairman of the Board, shares with us the leading role of the state of Veracruz in the energy sector from an economic perspective.
As an active company in the Mexican economy, what impact does the oil industry have on the national GDP?
The impact can be observed from the analysis of the behavior of the extraction and refining sectors. In 2003, the activity corresponding to the extraction of hydrocarbons represented 9% of the national GDP; being 5% in 2015. On the other hand, refinery represented 0.7% in 2009 and 0.5% in 2015.
This decrease in GDP has a direct impact on the national economy, the trade balance, the exchange rates, the tax revenues of the nation and the employed population.
What effect does oil and gas production have on Veracruz in relation to oil and gas production in the country?
When studying the progress of production over the years, it is noted that since 2005 oil production has experienced a constant fall nationwide, while in Veracruz there has been an accelerated growth in different periods, both in the production of oil since 2009 and gas since 2002.
On the other hand, in the state of Veracruz as of 2006 there is a decrease in gas production and a growth in oil production. This result is explained by investment decisions in oil production and gas producing fields.
How could the state of Veracruz benefit from the increase in oil production?
The opening of the Energy Reform offers private investment the opportunity to boost the local and national economy. As the production of oil in the state increases, the development of specialized talent is promoted through mechanisms such as minimum percentages of national content and the development of local productive chains.
Analyzing the production of daily barrels and the amount of population occupied in the state, it can be observed that these segments maintain a high correlation.
In 2005, the production was 62.32 Thousands of Daily Barrels (TDB) and the source of employment about 2.7 million people; while in 2014 the production was 111.06 TDB and the source of employment was 3.1 million. By increasing production, active companies increase and, consequently, the employed population increases. It is imperative to have a short-term analysis of the oil and gas industry in the state to implement immediate actions in search of high impact horizons, as in this case, the development of jobs.
In the context of the new energy model in Mexico: What is your opinion on the role of the state of Veracruz in the oil industry?
The state of Veracruz plays a leading role in Mexico. It is the state where the country´s oil history began; it is the second largest oil producing federation and has the largest number of oil basins. In addition, Veracruz has the Braskem Idesa Etileno XXI petrochemical complex, the largest in Latin America.
Veracruz could actively participate in this new energy model insofar as it manages through the new federal agencies. The local private sector, higher education institutions and trade union organizations are, among others, those who should be part of a great inclusive and strategic call.
I widely believe that the secret will reside in creating a business culture that promotes economic growth with an emphasis on organizational sustainability and social responsibility.
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Nuvoil, as a company from Veracruz, has decided to get involved in the construction of a strategy that allows the economic development of the region. Its management model formally frames a social responsibility in three axes: economic, environmental and social. In 2016, due to this corporate philosophy, the group voluntarily decided to be part of the United Nations (UN) Global Compact and to join the Sustainable Development Goals (SDG 2017) of the 2030 Agenda.
