Could you tell us about Schneider Electric’s trajectory and presence in Mexico?

Schneider Electric (SE) is a global specialist in energy management. We have over 140,000 employees in 110 countries. In the oil and gas vertical, SE participates in the upstream, midstream, and downstream parts of the industry. In the upstream, we have safety and control systems, including all telemetry for wellhead automation. In the midstream, SE offers electrification of facilities, as well as process control using DCS or SCADA for processing plants and LNG. We also provide SCADA for pipeline control systems. We reach the commercialization segment with products for terminal automation. Additionally, we offer cybersecurity, which is of great importance today. At the global level, we also have what we call StruxureWare Labs, whose purpose is to integrate hardware and software to provide solutions that do not have to be designed from scratch. In this way, when we implement solutions on the ground, start-up times and costs are reduced. We have two of these laboratories in Houston and two in Grenoble, France.

In Mexico, we have been in the market for several decades through brands that were not Schneider but were later acquired, such as Square D, which is one of the main players in the electrical transmission market in the Americas. We recently acquired Telvent, a Spanish company specialized in real-time pipeline control that has had a strong relationship with Pemex in Mexico. In January 2014, we also acquired Invensys, a British company with a strong presence in Mexico that specializes in control and security systems through well-known brands. We have over 8,000 employees in the country and 12 plants, which not only produce for the Mexican market but also for export. Our clients in Mexico include Pemex, ICA Fluor, Dragados Offshore, McDermott, and Mexichem.

Can you give us examples of SE’s innovative solutions in the oil and gas sector?

In the production part, we use frequency transmitters that regulate pumping speed to maximize production. We have products and software for wellhead automation. We have low-power solar-powered remote terminal units (RTUs), pressure and temperature sensors, flow sensors, wireless communication, SCADA, and management systems that can view many fields at the same time to send information back to corporate offices. In the subsea part, process technology is already somewhat developed, but what is new is installing the electrical distribution equipment on the seabed. For example, SE provided the electrical distribution module for the Ormen Lange pilot project in Norway. The subsea part should achieve 30-40% efficiency in production.

We have a fairly recent case in exploration, where we supplied a comprehensive multiphase pumping solution. We are also preparing a Smart Field concept for exploration, to control well performance. In the downstream, today an engineering manager does not have a global idea of what is happening in their refinery. We are working hard to provide a global management solution not only in the well part but also in the pipeline and refinery part. There is much to be done in the technological part. It is a gigantic opportunity.

How will the energy reform change Mexico’s industry?

The reform will bring many opportunities to Mexico and neighboring countries. Mexico needs to increase its hydrocarbon production and reduce its electricity costs. Generating electricity with natural gas is four times cheaper than using Bunker C fuel and six times cheaper than using diesel. With greater crude oil production, Mexico will be able to refine more gasoline (currently imports 49% of its needs). It is estimated that the reform will have created 500,000 jobs by 2018 and 2.5 million jobs by 2025.