After years of self-sufficiency, Mexico may be importing crude from the US. EU Ambassador Medina Mora and Secretary of Commerce, Penny Pritzker, confirmed the plan to import crude oil into Mexico.
Mora said Mexico is considering buying up to 100,000 barrels of light to help optimize the performance of Pemex refineries.
In a recent meeting with ambassadors and consuls of Mexico, Mora filed a formal request with the US that will be reviewed by the US Commerce Department.
While MILLENNIUM Pemex sources confirmed the intention of importing US light crude, there are no concrete figures on how many barrels or a possible agreement timeframe. The unit in charge of the negotiations , PMI (the commercial arm of Pemex), says “it’s merely a business decision.”
To date, Mexico imports averaged 600,000 barrels of hydrocarbon derivatives US (gasoline and other products). US Secretary of Commerce, Penny Pritzker, told Reuters that there is “an open and active discussion with the Mexican government” as to possible oil sales to Mexico.
The proposal stems from the permit US authorities granted to energy companies to place surplus light oils, condensates and processed into foreign markets. The amendment to the policy of exporting US crude, which includes Mexico, and the national position to approve the import of hydrocarbons, are seen as two of the largest recent energy stories.
“The prospect that the US will sell oil to Mexico is surprising,” said George Styles, CEO of GSW Strategy Group, an energy and environmental consulting company. “The proposal becomes economically geographical sense, although there are no regulatory hurdles”.
Although the initial proposal are for American companies to sell up to 100 thousand barrels of light crude, the agreement potential could reach up to 200,000 barrels, as stated in a report by Ed Morse, head of global commodities analysis of Citigroup.
According to Morse, the “EU is overflowing” in terms of excess hydrocarbons, regardless of prices in global markets. Overproduction in that country will continue for many years. Rebecca Quintanilla, director of business of North America Mercuria Energy Trading, said that EU is about to become the largest global producer of oil, making it suitable for both nations Mexico will buy light crude.