• 4 minutes 5 Tweets That Change The World?
  • 7 minutes Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking You Ask ?
  • 11 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 minutes Glory to Hong Kong
  • 4 hours Trump will capitulate on the trade war
  • 4 hours Support Held. Back in UGAZ
  • 9 hours China's Blueprint For Global Power
  • 1 hour The power of propaganda has no boundaries: Which country has larger territory US od China
  • 8 hours Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 11 hours PETROLEUM for humanity 
  • 42 mins Iranian Oil Tanker struck by missiles off Jeddah
  • 3 hours Crazy Stories From Round The World
  • 13 hours How The US Quietly Lost The 1st Amendment
  • 10 hours ISIS Prisoners Escape Syria Camp After Turkish Shelling. Woohoo!
  • 6 hours China 2019 - Orwell was 35 years out
  • 13 hours Leftists crying to make oil patch illegal friendly: 'Broken system' starves U.S. oil boom of immigrant workers: CONGRESS DO YOUR JOBS INSTEAD OF PANDERING!
  • 8 hours Total SA In Expansion: $600 million For India's Adani Gas

Breaking News:

Russia: OPEC+ Deal Will Not Be Revised

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Huge Oil Buyer Is Appearing Nextdoor To The U.S.

America’s crude oil production has surged 70% since 2009. And that’s left E&P firms scrambling to find markets to sell this supply.

There may be one more option emerging on that front, judging from news late last week.

Mexico.

A group of 21 U.S. senators has reportedly sent a request to the national Secretary of Commerce. Asking that the Obama government consider allowing American crude to be shipped south to Mexican consumers.

The formal letter was triggered by a request from an affiliate of Mexican state oil firm Pemex. Which is asking that it be allowed to swap 100,000 barrels per day of heavy Mexican crude for light oil and condensates produced in the U.S. Related: North American Energy Integration Could Bring The Planet To Its Knees

Under existing trade law, such swaps can be approved by regulators on a case-by-case basis. With the group of senators asking that the deal be given permission to proceed.

But the senators went further in their request letter. Suggesting that the Obama administration should consider allowing wholesale exports of U.S. crude into Mexico.

They pointed to the fact that a similar exemption to the U.S. oil export ban has been granted to Canada. With shipments north of the border having been allowed since Reagan administration approval in 1985. Related: Renewed Calls To Allow US Crude Exports To Mexico

If a Mexican export exception was granted, it would be a very significant development for the E&P sector. With cross-border flows almost certain to provide a sizeable outlet for surging U.S. supply — and possibly help to raise North American prices.

Of course there’s no guarantee that any such approval will come as a result of the senators’ request. For the moment, this is a development to keep one eye on, pending further rulings from Commerce.

Here’s to going south, young trader,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play