• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 3 hours Joe Biden's Presidency
  • 12 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 1 day https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 1 day Is the Chinese CCP Following the Left's Leadership, or the Left Following the CCP's?
  • 1 hour An exciting development in EV Aviation: Volocopter
  • 1 day Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 9 hours Did I Miss Something?
  • 2 hours The Debate Starts : Remake Republican Party vs. Third Party
  • 14 hours Minerals, Mining and Industrial Ecology
  • 2 days CNN's Jake Tapper questions double amputee purple heart recipient GOP Rep's commitment to democracy. Tapper is a disgrace.
  • 11 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 2 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days Do Republicans like Liz Cheney, Adam Kinzinger, Mitt Romney and now McConnell think voting for Impeachment can save the party ? Without Trump base what is the Republican constituency ? It's over.
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