Car manufacturers are urging the…
Ukraine is emerging as a…
The U.S. Energy Information Administration (EIA) has reported that energy trade in 2022 between the United States and Mexico totaled $81.9 billion in real prices, an all-time high. U.S. energy exports to Mexico in real prices totaled $55.8 billion in 2022, up from the previous high of $45.4 billion in 2021, again an all-time high.
The U.S. was a net importer of crude from Mexico but a net exporter of petroleum products and natural gas. U.S. crude oil imports from Mexico averaged 536,000 barrels per day (b/d), a 9%Y/Y increase. The total value of crude imports was $20.7B, good for a 47% increase in large part due to Brent crude oil spot price averaging $103 per barrel in 2022 compared with $77/b in 2021.
Mexico continues to be the largest export market for U.S. petroleum producers, accounting for nearly 20% of exports. U.S. petroleum product exports to Mexico averaged 1.7 million b/d in 2022, a 33% increase from 2021 while the value of exports was $44.2 billion in 2022 from $33.5 billion in 2021.
U.S. natural gas exports to Mexico were 5.7 billion cubic feet per day (Bcf/d) in 2022, which was 4% lower than the 2021 average while prices declined 1.5% from 2021. Natural gas trade between the two countries is mostly pipeline shipments.
While energy trade between the two countries remains robust, the decision by Mexican President Andres Manuel Lopez Obrador to roll back reforms aimed at opening Mexico's power and oil markets to outside competition has angered the U.S., Canada, and Europe and triggered bipartisan calls for the U.S. to get tougher on its southern neighbor. In recent years, U.S. Big Oil companies, such as Chevron Corp. (NYSE:CVX) and Marathon Petroleum Corp. (NYSE:MPC), alongside a host of solar and wind energy companies, have struggled to obtain permits to operate in Mexico.
The Office of the United States Trade Representative (USTR) will make a"final offer" to Mexico negotiators to open up its markets and agree to increased oversight.
By Alex Kimani for Oilprice.com
Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.