US government approved limited crude oil trading with Mexico in August, up to 100,000 b/d of heavy crude oil
In July the US became a net exporter of oil to Mexico for the first time in decades, thanks to the shale revolution says the US Energy Information Administration.
Net exports (only oil products because the U.S. bans most shipments of crude) totaled 48,000 barrels a day, the U.S. Energy Information Administration said in data released last week.
Only a decade ago the US bought net 1.3 million barrels of oil from Mexico. A major crude exporter for decades, Mexico has seen its oil production fall in recent years.
The emergence of the U.S. as a net supplier to Mexico underscores how the growth of the shale industry is redrawing the global energy map.
Output from shale rocks pushed U.S. oil production to a three-decade high earlier this year, driving down prices, boosting margins for refiners and fueling a debate over whether the country should lift restrictions on exports of crude.
U.S. Midwest refineries earned $24.50 a barrel in Q3 to Sept. 23, compared with $20.80 in the preceding quarter and $17.60 a year earlier, according to BP Plc data as reported by Bloomberg News.
“The refineries are running so hard that they have extra products and that is getting exported, making the U.S. less dependent on imports overall,” said Gareth Lewis-Davis, senior commodity strategist at BNP Paribas SA in London told Bloomberg.
“More domestic oil means it’s a boon for the economy and less dependence on Middle East oil.”
The Obama administration approved limited crude oil trading with Mexico in August, further easing the longstanding U.S. ban on crude exports that has drawn consternation from Republicans and energy producers.
Mexico’s state-run oil company Petroleos Mexicanos, or Pemex, had sought to import about 100,000 barrels of light crude a day and proposed a deal last year in which Mexico would trade its own heavier crude for lighter U.S. crude.