Carlos Slim, the wealthiest person in Latin America, has significantly increased his investments in American energy companies this year, following a trend among global billionaires betting on fossil fuels.
Slim has invested $602 million in PBF Energy Inc., a New Jersey-based oil refiner, raising his stake in the company to 25%. He also acquired $326 million in shares of Talos Energy Inc., a Houston-based oil producer.
In addition to his U.S. investments, the Mexican billionaire’s company, Grupo Carso SAB, made a notable move in the energy sector last year. Grupo Carso purchased PetroBal SAPI’s 50% stake in two oil fields in Campeche, southern Mexico, for $530 million. The fields, Ichalkil and Pokoch, produce about 16,350 barrels of crude oil equivalent daily. The acquisition led to a surge in Carso’s stock price, hitting record highs. Mexican President Andrés Manuel López Obrador praised the deal, noting that it keeps energy resources in Mexican hands. He expressed confidence that the investment would help increase crude oil production, saying, “I consider that to be good news.”
While the deal was welcomed, President López Obrador’s nationalist policies have made the Mexican government more hostile toward foreign companies in the energy sector. Last year, the oil and commodities trading giant Trafigura was forced to reduce its oil trading operations in Mexico due to shrinking margins. The company faced financial pressure, partly because of fuel subsidies implemented by the Mexican government.
Meanwhile, Warren Buffett’s Berkshire Hathaway has also continued to expand its investments in oil and gas. Recently, the company purchased an additional 8.9 million shares of Occidental Petroleum, bringing its total stake in the company to 260 million shares. This investment is now worth approximately $12 billion, making Occidental Petroleum the sixth-largest holding in Berkshire Hathaway’s portfolio.
Related Topics:
- North Dakota Crude Output Cut by 520,000 b/d After October Fires
- Qatar Increases Oil Prices for February Shipments
- EIA Reports Smaller-Than-Expected Drop in Crude Inventories