Posted on 10/01/2015 9:52:36 AM PDT by thackney
The U.S. sent more crude oil and petroleum products to Mexico than it received for the first time in at least two decades in July, according to the latest government data.
The switch from net importer to net exporter underlines a new reality for oil markets: After decades of sourcing oil from south of the border, the U.S., and especially Texas, has plenty of oil. Simultaneously, Mexican production has declined even as the country’s need for oil and the products that come from it have risen.
U.S. net imports of oil and petroleum products from Mexico peaked in June of 2006 at 1.6 million barrels per day. In July, the U.S. sent net exports of about 48,000 barrels per day to Mexico.
Mexico’s oil production has tapered off recently from about 3.5 million barrels per day in 2008 to roughly 2.3 million barrels per day this year. The country has launched a massive reform intended to reverse the decline, but any production boost from private investment remains years away.
In addition to declining Mexican production, stepped up production from Canada has made it harder for Mexican oil to find a home in U.S. refineries on the Gulf Coast.
Mexico produces and sends to the U.S. mostly heavier crude oil, similar to what comes from Canada’s oil sands. Increased production from those sands, combined with new pipelines bringing more of that oil to the Gulf Coast, have stiffened the competition Mexican oil faces in the U.S.
U.S. net imports from Canada have risen over the same period Mexican imports have fallen. In 2006, the U.S. was a net importer of crude oil and petroleum products from Mexico at 2.1 million barrels per day. The most recent figures show that figure has risen to 2.5 million barrels per day.
The U.S. hasn’t allowed crude oil exports since the 1970s, though in August the Commerce Department said oil producers could swap the light oil flowing from U.S. shale for heavier oil produced in Mexico.
With the drug lords in Mexico holding the treasury of the country because revenue from oil is rapidly declining, the reality is that we should no longer negotiate with the Mexican government. Anchor babies, illegal alien invasion, and the ‘drug war’ are all symptoms of an inconvenient truth. There is no “Mexican government” at this point in time.
Mexico will build the wall and pay for it too. Sound like a plan?
When Mexico hit their oil fields and the US was mired in a no-drilling policy and we were importing oil from all over, Mexico told us to shove it as they sent their oil overseas.
No, Most of Mexico exports still come to the US. But their total exports continue to decline as their total production continues to decline.
Also, we are exporting more refined products into Mexico, as the charts above show.
But in the beginning Mexico told the US to go pound sand.
????
Could you provide a link or more info what you are talking about?
But as I said, Mexico refused to sell oil to us in the beginning.
What are you calling “the beginning”?
That's the "beginning" I was talking about.
Carter took office 1977. The US had been importing oil from Mexico for a few years before that and continued and grew while Carter was president.
Click the graph in post #9. It links to the data source. During the Carter Admin, imports of oil from Mexico grew steadily.
Then I don’t understand Mexico telling the US during that time they weren’t going to sell oil to us right during that oil embargo.
Since Mexico DID sell us oil during that time, I doubt that was the case.
By the way, the embargo did not happen during the Carter Administration. It was from fall 1973 to spring 1974.
https://history.state.gov/milestones/1969-1976/oil-embargo
1973 is when Mexico began exporting oil to the US, a very small amount.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrimusmx2&f=a
When their total oil production rose with the new fields, that is when their exports to us became more significant.
Okay - have to get back with grandad since he was the one ranting about it.
During Carter’s years, there was the US Oil “crisis” that came following the Iranian Revolution. Iran’s production dropped badly for a while.
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