Expanding American Energy Stakes
Carlos Slim, Latin America’s wealthiest individual, has significantly increased his investments in American energy companies in 2024. Slim, through his financial empire, poured $602 million into PBF Energy Inc., a New Jersey-based oil refining company, raising his ownership stake to 25%. Additionally, he invested $326 million in Talos Energy Inc., an oil producer headquartered in Houston, Texas. Both investments underscore the continued interest of global billionaires in the fossil fuel sector amid growing global energy demand.
Strengthening Energy Ventures in Mexico
Beyond his U.S. investments, Slim has reinforced his commitment to energy production in Mexico. His conglomerate, Grupo Carso SAB, finalized a $530 million deal in 2023 to acquire a 50% stake in PetroBal SAPI’s Ichalkil and Pokoch oil fields located in southern Mexico’s Campeche region. These fields currently yield approximately 16,350 barrels of crude oil equivalent daily. The announcement of the acquisition caused Carso’s shares to surge to record levels.
Mexican President Andres Manuel Lopez Obrador, despite his prior criticisms of private energy investments, expressed support for the deal, emphasizing its importance in maintaining national energy resources. Obrador’s nationalist stance has led to challenges for foreign energy firms, such as Trafigura, which recently scaled back operations in Mexico due to shrinking profit margins caused by government fuel subsidies.
Rising Competition Among Billionaire Energy Investors
Carlos Slim’s moves align with a broader trend of prominent investors increasing their stakes in the energy sector. Warren Buffett’s Berkshire Hathaway, for instance, has also expanded its oil and gas portfolio. Just two weeks ago, Berkshire acquired an additional 8.9 million shares of Occidental Petroleum, bringing its total ownership to 260 million shares worth $12 billion. This makes Occidental the sixth-largest holding in Berkshire Hathaway’s portfolio. The activity among billionaires like Slim and Buffett highlights a sustained confidence in the profitability of fossil fuels, even as the world gradually shifts towards renewable energy sources.
