Interview with Emilio Lozoya

CEO Petroleos Mexicanos (Pemex)

In the US economy – the largest economy in the world – there are signs of increased productivity growth in various sectors. Key sectors of the economy that drive GDP growth look promising on the numbers. There may be some divisions in Congress, but at the same time the numbers from the US companies as of 2013 are very good.

Easy oil is over. You need to be finding the right technologies to extract hydrocarbons. But I perceive that the technology growth and the research and development efforts over the past few years are paying off. And the most important result is the shale revolution in North America. This is transforming our region in particular...

I perceive talent to be one of the most important challenges for Pemex. We are investing heavily in attracting and retaining talent. This is not only a problem in Mexico, but for the industry in general. We need to have higher numbers of graduates in those areas where the industry needs them.

There are people who believe that disruptive technologies, new energy-producing technologies might arise. I see that as a low-probability, high-impact event. Today there is nothing near in the energy landscape that would create such a high impact, and transform the need for oil and gas to fuel economic growth.

Working with communities on environmental and social issues [is a challenge]. To this extent we have just launched – or are about to launch – a separate foundation that will help Pemex to work much more closely and in a more proactive way with those communities that offer us the opportunity to work with them.

The oil industry needs to look at very long-term goals. Investment cycles in deep water are more than ten years, in some cases, to recover the cost, and to have internal rates of return on a level with the industry.

The purpose of Pemex, like any company, should be to create value. Value for shareholders and for all the stakeholders around the company.

As part of PwC's 17th Annual Global CEO Survey, we spoke with Emilio Lozoya, CEO of Petroleos Mexicanos (Pemex). In this short video, Emilio shares his views on the global economic outlook, the importance of having the right regulatory environment, and the legacy he would like to leave behind.

Mr Lozoya has been CEO of Petroleos Mexicanos (Pemex) since 2012. He holds degrees in Economics and Law from UNAM and the ITAM, respectively, and has a Masters in Economic Development from the University of Harvard. He is the author of various publications on monetary policy, productivity and competitiveness, efficiency in public policy, education and electoral systems. From January to November 2012, he worked on the campaign team and transitional government of President Enrique Peña Nieto in charge of international affairs. His earlier career includes from 2009 to 2012, where he founded and led several investment funds specialising in private equity investments globally, in various industries. From 2006 to 2010, he was the Chief Director for Latin America at the World Economic Forum and prior to this (2003-2006) he worked as an Investment Officer at the Inter-American Investment Corporation (a member of the Inter-American Development Bank). He has also worked at the Bank of Mexico in the area of investment and changes in international reserves and in 2011 was recognised as a Young Global Leader by the World Economic Forum.

These interviews contain the opinions and views of the CEOs interviewed, and do not necessarily represent the opinions and views of PwC.