Posted on 01/09/2015 5:28:21 AM PST by thackney
Mexican state-run oil giant Petroleos Mexicanos said Thursday it has requested permission from the U.S. Commerce Department to import light crude to Mexico from the U.S., with the aim of improving output at its Mexican refineries.
The significant increase of light crude production in the U.S. presents an opportunity to mix that oil with Mexican heavy crude, and thus boost refining efficiency in Mexico, the company known as Pemex said.
Pemex anticipates that it could import up to 100,000 barrels a day of light crude and condensates under the proposal, which it calls a “swap.”
America has a long-standing ban on exporting crude-oil pumped in the U.S., but the Commerce Department recently issued new rules clarifying that some ultralight oil can freely flow out of the country to foreign buyers. Dubbed condensate by the energy industry, this light oil no longer needs to be fully processed at a refinery before it is shipped out. Energy experts estimate that up to one million barrels of light oil pumped primarily in Texas is now eligible for export.
(Excerpt) Read more at wsj.com ...
Some more info at:
U.S. Oil Export Ban Poised to Loosen With Mexico Request
http://www.bloomberg.com/news/2015-01-08/pemex-requests-light-crude-imports-from-u-s-to-improve-refining.html
Pemex Asks U.S. for Light Crude Imports to Boost Refining
http://www.hellenicshippingnews.com/pemex-asks-u-s-for-light-crude-imports-to-boost-refining/
Let's see obola stiff THIS pipeline
This will not be a new pipeline.
Crude oil has a mix of many different hydrocarbons, the most valuable of which are the smaller, “lighter” molecules that are used to make gasoline and jet fuel.
Light crude has a greater percentage of these light components and less of the heavy components, which are used to make less valuable, tarry petroleum products. Sol this is what they mean when they say “light crude” or “heavy crude”.
“Sweet” and “Sour” means how much sulfur is in the crude oil. Less sulfur is better because it is much easier to refine, burns cleaner, and has a better odor. Sour oil has more than 0.5% sulfur.
Because there is so much crude oil in the world, everybody wants to buy the “light/sweet” crude, though there is far less of it available than “heavy/sour” crude. And refineries definitely prefer to refine light/sweet, as is is much cheaper, cleaner, and easier to refine.
The major producers of sour crude oil include:
North America: Alberta (Canada), United States’ portion of the Gulf of Mexico, and Mexico.
South America: Venezuela, Colombia, and Ecuador.
Middle East: Saudi Arabia, Iraq, Kuwait, Iran, Syria, and Egypt.
Great idea.
Each and every barrel to be personally delivered by a Mexican National who just happens to be here “Without Papers.”
Not everyone. Many refineries in the US already spent billions of dollars to upgrade our refineries to efficiently process heavy and sour crude. It is cheaper and it has more BTU content. They would have to spend even more money now to switch back to light oil which is more expensive. Spending money to have higher cost is not what they want to do.
The article mentioned condensate. Is that a screwup on their part, or are they just after the really high gravity stuff?
Took the words right out of my ....keyboard.!
I read the condensate reference to just be discussing the recent clarification from the Commerce Department, not part of the request from Pemex.
Lack of knowledge by the Journalists, or expected lack of knowledge by the readers and pretending they are related.
Just like the previous condensate export articles tried to imply the guidelines was opening up for more exports, when no rules were changed, only clarifying that liquid condensate had to meet the same rules as crude oil.
We’ll send em some light crude when they shut their borders and act like a nation who cares about it’s citizens.
Perhaps a boost in Mexico’s economy will make the country more attractive to a portion of their citizens, convincing some to remain in their own country.
Texas gets an uptake in their economy, less entrants into our taxpayer sponsored feature laden subsistence system. Win Win!
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