Replies

Is this a 1-for-1 swap???
Why would we do this? Light crude is much more easily-refined than that Mexican and Venezuelan crud.

1 light sweet barrel = 1 heavy crude barrel plus cash.

Pemex is collecting bid, private oil companies to decide what it is worth to them.

I understand that Mexico needs light crude to help them flush their heavy crude out of its wells.
And I think you said that American refinery aren’t set up for light crude but for (cheaper) heavy crude?
Sounds like a win-win.
But then, so does simply repealing the embargo of American exports altogether. It was bad Democrat policy when enacted, and makes even less than no sense now.

I understand that Mexico needs light crude to help them flush their heavy crude out of its wells.

No, not out of the wells.

But it is blended in prior to the refinery to better match their refineries optimal design. Just as we do at some refineries ourselves.

And I think you said that American refinery aren’t set up for light crude but for (cheaper) heavy crude?

Not all, but many of the Gulf Coast area have maxed out their ability to use light sweet, after blending in all we efficiently can. Essential all of the last few years of oil production growth has been light sweet from shale formation.

Sounds like a win-win.

I think so. We export our expensive oil, import their cheaper oil and make some profit.

But then, so does simply repealing the embargo of American exports altogether. It was bad Democrat policy when enacted, and makes even less than no sense now.

I'll say bad federal policy. I believe this happened under the Nixon Administration's lead.