Heavy Oil / Light Oil Exchange Between US / Mexico? -- January 11, 2015
Bloomberg is reporting:
The 40-year old ban on most U.S. crude
exports is set to be loosened after Mexico’s state-owned oil
company asked for an exception.
Petroleos Mexicanos is in talks with the U.S. Commerce
Department to import 100,000 barrels a day of light crude to
increase Mexico’s gasoline production and improve refining.
Pemex, as the world’s ninth-largest oil producer is known, would
send its heavy oil to U.S. Gulf Coast refineries in exchange.
Oil producers including Exxon Mobil Corp. and Continental
Resources Inc. have called for the U.S. to end the restrictions,
saying booming domestic output reduces the need to keep supplies
at home. U.S. oil supply has increased by 66 percent in the past
five years, and a majority of that growth is in light oil from
shale rock.
“The announcement suggests that this was done
pursuant to some pre-arranged understanding between the two
countries.”
Pemex’s request comes a week after President Barack Obama’s
administration opened the door for expanded exports of an ultra-light type of crude oil known as condensate that has gone
through minimal processing.
The Commerce Department published
guidelines on its website for such exports December 30, 2014, the first
public explanation of the rules involved.
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