Latin America’s Richest: Carlos Slim Doubles Down on Oil as Fossil Fuel Demand Persists

Carlos Slim, Latin America’s wealthiest individual, has invested $1 billion this year to expand his portfolio in crude oil production and refining, betting on the sustained demand for fossil fuels. The 84-year-old billionaire, best known for building the telecom empire America Movil SAB, has been diversifying his investments in recent years, adding assets such as real estate in Spain, a stake in the UK’s BT Group Plc, and his growing oil ventures.

Through his family investment firm, Control Empresarial de Capitales, Slim directed $602 million into the U.S. refining company PBF Energy Inc., regulatory filings revealed, raising his stake to 25%. Additionally, he acquired $326 million in shares of Houston-based oil producer Talos Energy Inc., bringing his ownership in Talos to 24.2%. This prompted Talos’ board in October to adopt a poison pill strategy to prevent Slim from exceeding a 25% ownership threshold. In a separate deal, Slim increased his stake in a Mexico joint venture with Talos from 49.9% to 80% for a total purchase price of $82.7 million.

Despite recently crossing the $100 billion mark in net worth, Slim’s fortune has declined by 22% this year to $81.8 billion, according to the Bloomberg Billionaires Index. The drop has been attributed to a weakened Mexican peso and losses in some of his largest assets, including a 40% decline in his holding company, Grupo Carso SAB.

While Slim has not publicly commented on the oil investments, his son-in-law and spokesperson, Arturo Elias Ayub, did not respond to inquiries on the matter. However, Slim has previously expressed interest in increasing his oil investments, revealing in February plans to deepen his understanding of refining and petrochemical operations. He also mentioned seeking partnerships with experienced firms operating in the Gulf of Mexico region.

Slim’s purchases of PBF and Talos shares have been strategic, often made during periods of stock price declines. Talos shares have dropped 35% in 2024, while PBF’s stock is down 42%. His recent decision to expand his stake in the Mexico joint venture with Talos gives his family greater control over expected profits from the Zama oil field, one of Mexico’s most significant recent discoveries.

In addition to these investments, Slim committed $1.2 billion in July to develop the Lakach offshore gas field through Grupo Carso, partnering with the Mexican state oil company Petroleos Mexicanos (Pemex). The project also involves Talos and the Spanish construction firm Fomento de Construcciones y Contratas SA (FCC), in which Slim owns an 80% stake.

With these strategic moves, Slim is positioning himself to benefit from Mexico’s promising energy sector while reinforcing his family’s influence in global oil and gas markets.

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