Mexico Halts All New Upstream Auctions For At Least Three Years -- December 5, 2018

Mexico. When President Obama killed the Keystone XL it was clear he did not understand energy.

Now, just as clearly, Mexico's new president does not understand energy. The Mexican president has halted upstream auction rounds for three years.

He rationalizes why he has taken this move, but it is clear he does not understand how the oil business works.

Story at S&P Global / Platts.

The postponement of auction rounds will have a long-term, material impact on Mexico's oil and gas output, according to a transition report issued by the outgoing administration of Enrique Pena Nieto over the weekend.

According to the report, by halting auction rounds by two years, Mexico's output will only reach 2.46 million b/d by 2027, not 3.07 million b/d. Similarly, if auctions continue, Mexico would produce 7 Bcf/d of natural gas by 2028, 640 MMcf/d more than if the lease sales are shelved for two years, it said.

But does it matter in the big scheme of things? Nope. Look at what the outgoing administration is quibbling over: 2.5 million bopd vs 3 million bopd. Inconsequential in the big scheme of things.

One wonders how much Canada is losing due to faux environmentalists: Northern Gateway (killed); TransMountain (killed);  Keystone XL (killed); Line 3 (delayed, possibly killed).

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Macron Caves On Green Energy Tax

Updates

December 6, 2018: Considering how little France contributes to global CO2 this whole exercise seemed ludicrous. Add that to Macron's suggestion that France needs its own army to protect itself against Russia or  the United States makes me wonder how really "batty" this guy is. He's starting to make Occasional-Cortex look like an Einstein. Article at ABC News. 

Original Post

France: "most taxed" country in 2017, and still Macron not satisfied. France overtook Denmark as the most taxed country in 2017. Link here. The few examples given in the article are quite interesting.

The Organisation for Economic Cooperation and Development (OECD) said on Wednesday overall government tax revenue on average reached 34.2 percent of gross domestic product (GDP) last year among 34 developed countries for which the Paris-based body compiled data.

Though up only slightly from 34.0 percent in 2016, the figure was the highest average overall tax take since the international policy forum’s records began in 1965, it said.
In France, tax revenues rose to 46.2 percent of GDP, surpassing Denmark, where the ratio fell to 46.0 percent. 

• Mexico: lowest at 16.2% of GDP
• US: 27% of GDP; if one includes state and property income tax, one wonders how high the US tax rate would be
• Israel: 32.7% of GDP