Carlos Pascual Testimony Adapted for IHS

7182019 Carlos Pascual Testimony Adapted for IHS

httpslidepdfcomreaderfullcarlos-pascual-testimony-adapted-for-ihs 18

IHS ENERGY

Mexicorsquos Energy ReformsStrategic challenges ahead

August 983090983088983089983093 ihscom

STRATEGIC REPORT

Global Energy | Special Report

Carlos Pascual

Senior Vice President IHS


httpslidepdfcomreaderfullcarlos-pascual-testimony-adapted-for-ihs 28copy 983090983088983089983093 IHS 983090 August 983090983088983089983093

IHS Energy | Mexicorsquos Energy Reforms

IHStrade ENERGYCopyright notice and legal disclaimer

copy 983090983088983089983093 IHS No portion of this report may be reproduced reused or otherwise distributed in any form without prior written consent with the exception of any internal client distribution

as may be permitted in the license agreement between client and IHS Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of

authorship The information contained herein is from sources considered reliable but its accuracy and completeness are not warranted nor are the opinions and analyses which are

based upon it and to the extent permitted by law IHS shall not be liable for any errors or omissions or any loss damage or expense incurred by reliance on information or any statement

contained herein IHS and the IHS logo are trademarks of IHS For more information pleas e contact IHS at wwwihscomCus tomerCare

Contents

Mexicorsquos energy reforms 983091

North Americarsquos interests 983092

Ronda 983089 and global oil markets 983093

Transforming the power sector 983094

Policy implications 983095

983089 Oil exports 983095

983090 North American Energy Forum 983095

983091 The Caribbean 983095

983092 Central America 983096

983093 Mexican power 983096

Carlos Pascual

Senior Vice President Global Energy International Affairs IHS

Carlos Pascual former senior US diplomat and most recently the State Departmentrsquos top energy official joined

IHS in January 2015 as Senior Vice President to focus on global energy issues and international affairs As the

former US Energy Envoy and Coordinator for International Energy Affairs at the State Department Mr Pascual

established and directed the new Energy Resources Bureau and served as the Senior Advisor to the Secretary

of State on energy issues In that role he took the lead in negotiating the Iranian oil sanctions with China India

and other countries He also played a key role on Iraqi oil developments and natural gas flexibility in Europe

Since joining IHS Mr Pascual has been leading ongoing IHS work on Mexicorsquos energy reforms and the implica-

tions of the Iran nuclear deal for energy development and sanctions policy He has also led a project ondeveloping a competitive fiscal regime for Ukrainersquos natural gas sector He is centrally involved in incorporating

geopolitical risk into IHS market forecasts

Mr Pascual was previously US Ambassador to both Mexico and Ukraine and was Special Assistant to the US

president for Russia Ukraine and Eurasia on the National Security Council Mr Pascual created the position of

coordinator for reconstruction and stabilization in the State Department establishing the first civilian response

capacity to conflicts He also was the State Departmentrsquos coordinator for US assistance to Europe and Eurasia

and held leadership roles at the US Agency for International Development including Chief of Policy and

Strategy for Africa and field postings in Mozambique South Africa and Sudan

At the Brookings Institution Mr Pascual served as Vice President and Director of Foreign Policy Studies and

launched the Brookings Energy Security Initiative His book Power and Responsibility Building International

Order in an Era of Transnational Threats won a 2009 award for the best political science book published by an

independent publisher Mr Pascual taught and wrote on the geopolitics of energy as a fellow at Columbia

Universityrsquos Center on Global Energy Policy in the fall of 2014

Mr Pascual holds a Bachelor of Arts degree from Stanford University and a Master of Public Policy degree from

the Kennedy School of Government at Harvard University




Mexicorsquos Energy Reforms

Strategic challenges ahead

Carlos Pascual Senior Vice President IHS

Chairman Duncan Ranking Member Sires and members of the committee I appreciate the opportunity to testifybefore you on Mexicorsquos energy reforms and their significance for North America

Since 983090983088983089983090 Mexico has embarked on a historic opening of its energy sector to allow private investment and competitionin the production transit and sale of oil gas and electricity and in the coming years in retail markets as well On 983089983093 July Mexico completed the first tender since 983089983097983091983096 for the sale of hydrocarbon assets Even though the results did not

meet expectations the tender formalized a process of opening the energy sector to private investment991252and thereby tothe benefits that will eventually accrue from infusions of capital and technology Mexico will benefit from these reformsbut so will US businesses and workers North America can improve its energy security and play a more profound role instabilizing energy markets regionally and globally I will address these issues in my testimony

I appear before you in my capacity as Senior Vice President for IHS IHS is a global consultancy that specializes in energycapital983085intensive industries data and analysis with a worldwide presence Although my responsibilities are globalI am based in Mexico and have had the opportunity to engage many of the key players in Mexicorsquos energy reformsI previously served as the Coordinator for International Energy Affairs and Special Envoy on Energy at the US StateDepartment I am associated with Columbia University as a Fellow at the Center on Global Energy Policy I also served asthe US Ambassador to Mexico from 983090983088983088983097 to 983090983088983089983089

Mexicorsquos energy reforms

Although Mexico nationalized its hydrocarbons sector in 983089983097983091983096 energy cooperation between the United States andMexico has a long history US oil investor Henry Clay Pierce helped finance the start of Mexican oil production in 983089983097983088983089American oil entrepreneur Edward Dohenny one of the pioneers of the oil industry in California founded the PanAmerican Petroleum and Transit Company in Mexico and there drilled the Cerro Azul No 983092 well which became theworldrsquos largest producing oil well at the time By the early 983089983097983090983088s Mexico became the worldrsquos largest exporter of oil andthe second largest producer after the United States

The House of Representatives played a key role in resuscitating that tradition of cooperation by championing the passageof the US983085Mexico Transboundary Hydrocarbons Agreement in 983090983088983089983091 which has made possible the development oftransboundary reserves that require the cooperation of both the United States and Mexico The Agreement creates aframework for US and Mexican companies to collaborate on the exploration and production of reservoirs that cross ourmaritime boundary anywhere in the Gulf of Mexico As a result it provides a foundation for increasing energy suppliesthat will benefit both economies and it promotes cooperation between our two countries on safety and environmentalregulation including providing for joint inspection and enforcement of activity under the Agreement

Although Mexican oil production grew steadily in the 983089983097983088983088s as of 983089983097983091983096 the Mexican Constitution prohibited privateinvestment and therefore deprived Mexico of revolutionary progress in energy technologies Production peaked in983090983088983088983092 at about 983091983094 million barrels per day 983080MMbd983081 and since then has fallen to current levels of about 983090983091983093 MMbd991252a983091983093 decline This decline991252in contrast with the more common practice globally of allowing international companiesto participate in oil and gas production991252influenced the Mexican government under President Enrique Pentildea Nieto tomake energy reform a core pillar of its policy agenda when it took office in December 983090983088983089983090 Equally important was therecognition that a healthy energy position was necessary to support economic growth and create opportunities for

The following is adapted from the 23 July 2015 testimony of Carlos Pascual Senior Vice President for IHS

before the House Foreign Affairs Committeersquos Subcommittee on the Western Hemisphere




Mexican workers and that attaining such a position required opening up the industry The pace breadth and depth ofimplementing these energy reforms has been unprecedented

In December 983090983088983089983091 within a year of taking office the Pentildea Nieto government passed a constitutional reform to allowprivate investment and competition in every aspect of the energy sector This included the support of two983085thirds of the

Mexican House of Representatives and Senate and a majority of the 983091983090 state legislatures On 983089983090 August 983090983088983089983092 Mexicopassed the secondar y legislation needed to implement reforms related to oil and gas production pipelines privatecompetition in the power sector and competitive retail sales The next day the government announced the results ofthe so983085called Round 983088 allocating 983096983091 of the proven and probable oil reserves to the state oil company PEMEX but in sodoing also made clear that this was the basis for ending PEMEXrsquos role as a government agency and transforming it intoa productive enterprise that must survive on its own resources In December 983090983088983089983092 just two years after the Pena Nietogovernment took office the National Hydrocarbons Commission launched its first round of international tenders991252whatthey call Ronda 983089991252with five phases that will consider the sale of about 983089983094983088 fields over the course of a year I will comeback to the implementation of Round 983089 and future prospects later in the testimony

In the power sector by the end of August 983090983088983089983092 Mexico created an independent systems operator for a new electricitymarket called the National Center for the Control of Energy In doing so it created the foundation for competition with

the monopoly held by the Federal Electricity Commission 983080CFE983081 CFE could contract with independent power producers983080IPPs983081 for power supply but under the new market these IPPs would be also able to bid against CFE to supply electricityto the power market breaking the governmentrsquos monopoly control over electricity supply In February 983090983088983089983093 theMexican government published the draft new market rules for the power sector In September it will conduct a live testof the power market and the new power market along with its associated elements for a capacity market clean energycertificates and transmission and distribution will come into force in January 983090983088983089983094

Private investment is also advancing in pipelines and refineries and refining will be open for retail sales in 983090983088983089983094Opportunities will expand further when subsidies are phased out on liquefied petroleum gas 983080LPG983081 in 983090983088983089983094 and forgasoline in 983090983088983089983096 Both CFE and PEMEX have completed tenders to expand the national gas pipeline system and tocomplete new interconnections with the United States This expansion of the pipeline system will bring US natural gasto Mexico help reduce household and industrial costs and increase North American competitiveness By the end of 983090983088983089983093the Mexican Energy Regulatory Commission will complete new regulations that will allow investments in existing and

new refineries either as a partner of or in competition with PEMEX

North Americarsquos interests

The strategic and commercial significance of these reforms for the United States and North America cuts across theenergy sector and beyond

In hydrocarbons production the completion of these reforms gives the United States Canada and Mexico anopportunity to make North America a new foundation for global energy security On 983090983095 November 983090983088983089983092 OPECdemonstrated that for now it would not act as a bloc to adjust production and affect energy prices Instead Saudi ArabiaKuwait and the United Arab Emirates decided to protect their global market share in oil and to rely on market forces torebalance supply and demand to the disadvantage of high983085cost producers983089 North America can contribute to filling thespace left by OPEC to help shape global oil market conditions that drive stable and sustained economic growth The USEnergy Information Administration has projected that the United States in a high case scenario could increase crudeproduction from current levels of 983097983091 MMbd to 983089983091983091 MMbd in 983090983088983090983088 The National Energy Board of Canadarsquos high forecastestimates that Canada could increase its production from 983091983094 MMbd in 983090983088983089983093 to 983092983091 MMbd in 983090983088983090983088 Mexico now has thechance to enter this club of rising production as its energy reforms attract investment North America will not act likean oil cartel Rather it represents three democratic and market983085oriented states establishing a reliable base of productionthat will set standards in international conduct and transparency in energy development and trade that can influence theglobal industry But to achieve this new foundation the United States must be an exporter a key issue addressed belowin the policy recommendations

1048625 See the IHS Energy Decision Brief Oil Change A world without OPEC as we knew it




Mexicorsquos new focus on extending gas pipelines has created business opportunities for US companies and investors Inone pipeline extending from Arizona to Mazatlan on the Mexican Pacific coast El Paso Natural Gas 983080a Kinder Morgansubsidiary983081 won the contract to build the US portion For the Los Ramones II pipeline which completes a route fromAgua Dulce Texas to Aguascalientes and Queretaro in Mexico the American investment firms Blackrock and FirstReserve have invested $983097983088983088 million to acquire 983092983093 ownership On 983090983090 June 983090983088983089983093 CFE announced tenders for 983090983092 energy

infrastructure projects estimated at $983089983088 billion in investment including a $983091983089 billion subsea pipeline from Brownsville tothe Mexican port of Tuxpan and 983095 additional pipeline projects US companies have comparative advantages to participatein construction and finance The extension of natural gas pipelines and lower electricity prices directly benefit companiessuch as GM Ford Chrysler Boeing GE Intel and other major US companies with investments in Mexico that areoperating integrated production lines and global export platforms that make their American products more competitivein the United States and globally

Similar investment patterns in the power sector and refineries are possible as final regulations and market rules comeinto effect CFE has launched a major program to invest in natural gas991251fired power creating opportunities for suppliers ofgeneration equipment but also leaving much of the renewable energy sector open to private investors Mexico imports983092983088 of its gasoline and has huge and urgent demand to upgrade existing refineries to meet environmental standardsand expand supply All of these openings in the energy sector will certainly drive Mexicorsquos economic growth and

competitiveness but they also represent a huge strategic and business opportunity for the United States To realize thatpotential Mexico and its investment partners will have to manage difficult market challenges

Ronda 983089 and global oil markets

Since Mexico amended its constitution to allow private investment in energy the price of the Brent benchmark price forcrude oil has dropped from a range of $983089983088983093991251983089983089983088 per barrel to about $983093983088991251983094983088 per barrel over recent months This hearingis not the forum to address the reasons for this price collapse but there is no doubt that it affects the implementationof Mexicorsquos reforms Lower prices are forcing oil companies to reduce capital expenditures financial institutions to cutinvestments in independent producers and oil producing countries to demonstrate that their fiscal terms compete withthe best international alternatives983090 Mexico is at a disadvantage international players do not have first983085hand knowledgeof Mexican assets and how to operate in Mexico Simply put to compete effectively Mexico has to make completely clear

that its assets contracts fiscal terms and local business and security environments offer investment returns that attractproduction and capital to Mexico at a time when the industry is cutting expenditures and costs

Mexico has announced plans for five phases of bids under Round 983089 of its hydrocarbons tender process

bull Phase 983089 shallow water exploration 983080983089983092 blocks983081

bull Phase 983090 shallow water production 983080983093 blocks983081

bull Phase 983091 onshore 983080983090983094 blocks983081

bull Phase 983092 deepwater 983080983089983091 blocks983081 and extra983085heavy oil 983080983089983089 blocks983081

bull Phase 983093 unconventional fields 983080983094983089 blocks983081 and Chicontepec 983080a massive complex onshore field 983089983090 blocks983081

Bids for phase 983089 were opened on 983089983093 July Bids will be opened for phases 983090 and 983091 on September 983091983088 and December 983089983093respectively The timelines for the other phases have not yet been announced

On 983089983093 July Mexico saw the impact of the difficult business climate in global oil production with the disappointinginterest in phase 983089 Although 983091983097 companies paid for data to investigate the blocks offered in phase 983089 and 983091983092 companiesprequalified to compete on 983089983093 July there were only 983097 bidders with 983092 of the bids coming from consortia Only 983090 out of 983089983092blocks were awarded Six blocks received offers but 983093 were under the minimum bids set by the government and were

1048626 See the IHS Upstream Spending Report Q983089 983090983088983089983093 Global EampP spending is expected to drop by 104862510486301048630 year on year in 1048626104862410486251048629 followed by a further 104862510486261048630 decline in 1048626104862410486251048630




not awarded and 983089 was lost to another bidder The consortium formed by Sierra Oil amp Gas 983080a newly formed Mexicancompany983081 Talos Energ y and Premier Oil won both blocks Talos is a Houston983085based company

Mexican officials will spend time investigating and applying lessons from phase 983089 possibly to contract terms for phases983090 and 983091 but most likely to a deepwater tender that has yet to be announced On July 983091983088 Mexican energy Minister Pedro

Joaquin Coldwell indicated that the deep983085water bid phase would be delayed to allow time to assess and apply lessons fromphase 983089 Some key issues might include

bull Field offerings were small and perhaps not of high interest to the larger international companies

bull Contracts were offered for four years with a two983085year extension but some companies may have wanted longer contractterms to perform more extensive exploration such as to determine whether there might be complex presalt formationsthat could be exploited at deeper levels

bull Government minimum bids may have been influenced by historical PEMEX production costs which may be lower thanthe costs estimated by potential investors

bull Fiscal terms may not have met investor requirements to mobilize capital given increased pressure from lowinternational oil prices to cut costs and capital expenditures

The important point is that all of these issues can be addressed Mexico took a historic first step demonstrating thepotential for an important combination of international oil partners US capital and a start983085up Mexican private industryThere will be more issues to address such as the capacity of the Mexican service sector whether other Mexicanprivate companies can secure international partners the role PEMEX will play in future bid rounds and pipeline andstorage capacity However with the sector now open for investment these potential issues can be turned into businessopportunities If the Mexican government and outside investors take that perspective these difficult first momentscould help consolidate the profound need for sensitivity to international markets and competitiveness that Mexico needsto demonstrate to fulfill its aspirations

Transforming the power sectorLess attention has been focused on electricity than on oil production but the transformation of the power sectorcould be the linchpin that sustains political support for energy reform By the end of the Pentildea Nieto administrationsuccessful implementation of its oil tenders should allow Mexico to secure contracts for tens of billions of dollars in newinvestment991252but it will take time for those investments to halt and reverse current production declines In the powersector the fast expansion of US natural gas imports has already allowed CFE to lower Mexican electricity prices by 983090983095for industry and between 983090 and 983089983089 for households Investments in natural gas pipelines from the United States willhelp Mexico sustain these major and tangible gains that benefit consumers and industry and help create jobs PresidentPentildea Nieto retains a majority in parliament after the 983090983088983089983093 midterm elections Polls suggest that the next governmentand parliament after 983090983088983089983096 will continue to support energy reform But the best way to secure that support is if theMexican people benefit tangibly from the results991252and here the power sector is key

As with oil and gas there will be implementation challenges as Mexico overhauls every aspect of its power sector Asmany US states have already done Mexico will face a conundrum as competition drives down prices how do you createan incentive to invest in capacity As competition increases with legacy utilities and takes away parts of their basemarket how do they manage stranded assets that are not competitive must be closed and the workers laid off As cleanenergy targets are established what are the cost implications and how are intermittent renewables integrated with base983085load generation requirements It is inevitable that Mexico will face these questions and need industry partnerships andtechnical support to avoid mistakes where it can and adjust quickly when needed

Both CFE and the Mexican governmentrsquos National Program for the Electricity Sector make clear that natural gas willunderpin the Mexican power sector and CFErsquos investments through 983090983088983090983088 Yet Mexico has also made very aggressivecommitments on clean 983080zero greenhouse gas 983080GHG983081991251emission983081 energy which is to account for 983091983093 of all generation by983090983088983090983092 with emissions peaking in 983090983088983090983094 This will reduce GHG emissions by 983090983093991251983092983088 by 983090983088983091983088 relative to business as usual




depending on market conditions To meet these targets Mexico will conduct long983085term auctions for new capacity WithCFE focused on the gas sector the renewables sector will offer a huge target for private investment where the UnitedStates can be a major supplier and investor

Policy implicationsFrom this discussion let me highlight five areas for policy actions that might be considered by this Committee thatwould enhance the future energy position of North America

1048625 Oil exports

I indicated earlier the strategic benefits of cooperation among Mexico Canada and the United States to make NorthAmerica a foundation for energy security991252for our own region and with a stabilizing impact globally North Americanenergy self983085reliance would be a critical point of flexibility and leverage in policy discussions with countries in Asia andthe Middle East North America will still depend on global oil prices991252we cannot disconnect from global markets991252butwe are less vulnerable to interruptions of energy To fully realize the benefits of our energy abundance we should alsohave the opportunity to export oil Other Congressional committees have addressed this issue IHS has completed twoexhaustive studies that demonstrate that lifting the ban on oil exports will bring major benefits across the United Statesbetween 983090983088983089983094 and 983090983088983091983088983091

bull $983096983094 billion in additional GDP

bull about 983092983088983088983088983088983088 new jobs annually

bull 983090983093 higher pay for workers in the energy industry supply chain

bull $983089983091 trillion in federal state and municipal revenue from corporate and personal taxes

Lifting the export ban would provide strategic benefits for North America that would only accentuate the economic

benefits to the United States A simple and immediate first step should be taken with Mexico to allow swaps of Mexicanheavy crude oil that is well suited for US refineries with US light tight oil which is in oversupply in the United States andmeets Mexicorsquos refining requirements

1048626 North American Energy Forum

Before the passage of its energy reforms Mexico could not address energy seriously in its annual North American LeaderSummits and its parliamentary exchanges with the United States That can now change and be underpinned by a NorthAmerican Energy Forum that would include the energy ministers of all three countries as well as establish a forumfor private company engagement To be effective it would create committees or working groups that facilitate public983085private engagement In oil and gas companies and governments could cooperate on sharing best practices on issues fromcapturing methane emissions to hydraulic fracturing to transparency in contracting and payments Such a forum wouldgenerate inputs for policy measures and perhaps financing opportunities It would make cooperation among energyleaders in government legislatures and the private sector more concrete and presumably more effective

1048627 The Caribbean

Since 983090983088983088983093 Venezuela has subsidized oil for the Caribbean states through an initiative called Petrocaribe as a meansto increase its relevance and influence and bolster its opposition and hostility to the United States The global collapsein oil prices has deepened what was already a severe financial crisis in Venezuela compromising its ability to sustainthese subsidies The loss of these subsidies will create economic hardship for many of the Caribbean nations But withlower oil prices the Caribbean states have a chance to find competitive sources of supply Through the North American

1048627 See the IHS reports US Crude Oil Export Decision Assessing the impact of the export ban and free trade on the US economy 9830801048626104862410486251048628983081 and Unleashing the Supply Chain Assessing the

economic impact of a US crude oil free trade policy 9830801048626104862410486251048629983081




Leaders Forum the United States Canada and Mexico are in discussion on opening new sources of supply or financingfor alternative forms of power that reduce the Caribbeanrsquos dependence on high983085priced diesel The openings in Mexico forprivate investment and international engagement will make it easier for Mexico to become a partner in such endeavorsTo have an impact the United States will need to invest in technical assistance and financing potentially through theOverseas Private Investment Corporation to bring alternatives to Petrocaribe within commercial reach

1048628 Central America

A power line now exists from Mexico to Panama that has begun to facilitate electricity trade across Central America TheInter983085American Development Bank has helped finance infrastructure and technical assistance costs The United Stateshas provided technical assistance to help develop the market rules and conditions for private investment The questionof power access and costs is a critical underlying factor in the Central American economies which may pay 983090983088991251983093983088 morefor power than we would pay in the United States But just as crucially the lack of reliability affects business interests job creation and educational opportunities991252all factors central to combating organized crime and illegal migration fromCentral America to Mexico and the United States Mexico is already an electric power source for Central America andit could provide additional supplies at competitive prices that would reduce costs and increase reliability in the regionAlso Mexico Guatemala El Salvador and Honduras are collaborating to build a natural gas pipeline from Mexico 983080at an

estimated cost of $983089983090 billion983081 which would introduce another lower983085cost energy and fuel source This committee is wellplaced to encourage the administration to engage aggressively with Mexico on energy supply to Central America and tohelp secure the resources for technical assistance through the State Department and USAID and for investment throughOPIC to help the emerging Central American power market to contribute to regional stability

1048629 Mexican power

We have already discussed the complex challenges that face the Mexican power sector The United States has skills andexperience to contribute perhaps most usefully through energy partnerships between utilities and through targetedtechnical assistance Such programs exist in USAID the State Department and the Department of Energy There is nowa political opening that did not exist before Mexicorsquos energy reforms to target and expand these in ways that will supportprivate investment

Mr Chairman I congratulate the Committee for its leadership in addressing the potential that Mexicorsquos energy reformsoffer strategically and commercially991252not just to Mexico but to the United States and North America In the energyfield no other region has today what North America can offer energy abundance and technology leadership across threedemocratic states and market economies with huge consumer markets financing potential and a global reach andinfluence The successful implementation of Mexicorsquos reforms is critical to making the most of these opportunities Theglobal oil price collapse has made the reform challenge more complex for Mexico The correct response is to learn fromthese market conditions adapt and use these lessons to capture the potential for investment production and trade




IHStrade ENERGYCopyright notice and legal disclaimer

copy 983090983088983089983093 IHS No portion of this report may be reproduced reused or otherwise distributed in any form without prior written consent with the exception of any internal client distribution

as may be permitted in the license agreement between client and IHS Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of

authorship The information contained herein is from sources considered reliable but its accuracy and completeness are not warranted nor are the opinions and analyses which are

based upon it and to the extent permitted by law IHS shall not be liable for any errors or omissions or any loss damage or expense incurred by reliance on information or any statement

contained herein IHS and the IHS logo are trademarks of IHS For more information pleas e contact IHS at wwwihscomCus tomerCare

Contents

Mexicorsquos energy reforms 983091

North Americarsquos interests 983092

Ronda 983089 and global oil markets 983093

Transforming the power sector 983094

Policy implications 983095

983089 Oil exports 983095

983090 North American Energy Forum 983095

983091 The Caribbean 983095

983092 Central America 983096

983093 Mexican power 983096

Carlos Pascual

Senior Vice President Global Energy International Affairs IHS

Carlos Pascual former senior US diplomat and most recently the State Departmentrsquos top energy official joined

IHS in January 2015 as Senior Vice President to focus on global energy issues and international affairs As the

former US Energy Envoy and Coordinator for International Energy Affairs at the State Department Mr Pascual

established and directed the new Energy Resources Bureau and served as the Senior Advisor to the Secretary

of State on energy issues In that role he took the lead in negotiating the Iranian oil sanctions with China India

and other countries He also played a key role on Iraqi oil developments and natural gas flexibility in Europe

Since joining IHS Mr Pascual has been leading ongoing IHS work on Mexicorsquos energy reforms and the implica-

tions of the Iran nuclear deal for energy development and sanctions policy He has also led a project ondeveloping a competitive fiscal regime for Ukrainersquos natural gas sector He is centrally involved in incorporating

geopolitical risk into IHS market forecasts

Mr Pascual was previously US Ambassador to both Mexico and Ukraine and was Special Assistant to the US

president for Russia Ukraine and Eurasia on the National Security Council Mr Pascual created the position of

coordinator for reconstruction and stabilization in the State Department establishing the first civilian response

capacity to conflicts He also was the State Departmentrsquos coordinator for US assistance to Europe and Eurasia

and held leadership roles at the US Agency for International Development including Chief of Policy and

Strategy for Africa and field postings in Mozambique South Africa and Sudan

At the Brookings Institution Mr Pascual served as Vice President and Director of Foreign Policy Studies and

launched the Brookings Energy Security Initiative His book Power and Responsibility Building International

Order in an Era of Transnational Threats won a 2009 award for the best political science book published by an

independent publisher Mr Pascual taught and wrote on the geopolitics of energy as a fellow at Columbia

Universityrsquos Center on Global Energy Policy in the fall of 2014

Mr Pascual holds a Bachelor of Arts degree from Stanford University and a Master of Public Policy degree from

the Kennedy School of Government at Harvard University





































































1048625 Oil exports




























































































1048625 Oil exports
























Carlos Pascual Testimony Adapted for IHS

Documents

Transcript of Carlos Pascual Testimony Adapted for IHS