Latest news with #Olmeca
Reuters
2 days ago
- Business
- Reuters
Mexico exports 39% less crude oil in June, lowest level in decades
MEXICO CITY, July 29 (Reuters) - Mexican state company Pemex exported 39% less crude oil year-over-year in June, reaching the lowest level in decades, official data showed, as processing at local refineries and fuel production increased significantly. It exported 458,103 barrels per day (bpd) in June, compared to 753,539 bpd in the same month a year earlier, company data updated late on Monday showed. This was the lowest level since records started in 1990. In May, Pemex's international trading arm, PMI, forecast that the company would export less this year because more would be sent to local refineries, including to its new Olmeca refinery in the port of Dos Bocas. Pemex gave no explanation for the decline. However, in its quarterly earnings report on Monday it said it imported less gasoline and diesel because more was being refined locally. In June, it imported 475,047 bpd of refined products, a 38% year-over-year decrease. Pemex, which owes about $120 billion to both investors and suppliers, has also struggled with a sharp decline in production. Its seven local refineries processed 1.12 million bpd, helped by the new Olmeca refinery, which took in 191,585 bpd. In recent years, the Mexican government has sought to achieve what it calls "energy sovereignty" by drastically reducing exports of crude oil and refining it locally. Pemex executives reiterated to investors after the quarterly earnings report that the company was working towards achieving its production goal of 1.8 million bpd. Mexico is still far from reaching this goal. Production of crude oil and condensate has been declining, hovering around 1.6 million bpd. The government and Pemex executives have said that production will rebound with the help of partnerships with private companies, but have not shared details.
Yahoo
28-05-2025
- Business
- Yahoo
Opinion - Why U.S.-Mexico energy interdependence must be strengthened
Over the last decade, the U.S. has emerged as an energy superpower, not only in terms of production but also as a dominant exporter of natural gas and refined petroleum products. This transformation has redefined the U.S. trade balance in energy, turning a long-standing deficit into a robust surplus. Nowhere is this shift more consequential than in the U.S.-Mexico energy relationship. The U.S. Energy Information Administration estimates that natural gas exports to Mexico reached 199.2 billion cubic feet in January. That number is stunning when we consider that in January of 1990, the U.S. exported less than 1 billion cubic feet to Mexico, and by January 2012 was still only exporting 23.4 billion. Today, Mexico imports more than 70 percent of its natural gas from the U.S., and a significant share of its gasoline, diesel and jet fuel as well, valued at $33.63 billion in 2024. These imports are not a luxury — they are essential for Mexico's industrial growth, transportation system and power generation. For Mexico, reliable access to competitively priced U.S. energy is essential to sustaining economic growth, enabling industrial competitiveness and stabilizing the electric grid. At the same time, for the U.S., Mexico has become an indispensable customer, so much so that any downturn in Mexican demand would ripple through U.S. refineries, gas producers and the infrastructure companies that have built pipelines and terminals to serve the southern market. This is a story of mutual interdependence, yet it is too often overlooked in political and policy debates in both countries. In times of flux for U.S foreign relations, and with a Mexican government committed to the principle of energy sovereignty, it is worth recognizing that the energy trade across our shared border is one of the most strategically important economic relationships we have — and one that deserves proactive stewardship. Mexico's demand for natural gas has grown dramatically in recent years, driven by a combination of industrial expansion and the shift from oil-fired to gas-fired electricity generation. Yet domestic production has not kept pace. Pemex, the state-owned oil and gas company, continues to underperform and investment in gas exploration and production has plummeted, while private investment has struggled to gain traction amid regulatory uncertainty. As a result, imports from the United States have filled the gap, with cross-border pipeline flows reaching record highs. In 2024, the U.S. exported over 1 million barrels per day of refined petroleum products to Mexico, making it the single largest market for U.S. refiners. Mexico's aging refinery fleet cannot keep up with domestic demand for gasoline and other products. The new Olmeca refinery at Dos Bocas, Tabasco, offers hope for Mexican refining, but without ongoing investment, other Mexican refineries will continue to operate at well below their capacity. Gasoline exports from the U.S. will continue to be essential for Mexico for many years to come. The stakes are high. Mexico's manufacturing sector, including its booming automotive and aerospace industries, depends on stable and affordable energy. So does the everyday functioning of its economy. If energy supplies were to falter due to political decisions, infrastructure failures or global price shocks, Mexico's economy would slow, with cascading effects across the region. For U.S. gas producers and refiners, Mexico represents more than a convenient export market — it is a crucial buffer against domestic oversupply and price volatility. The shale revolution has unlocked massive quantities of gas in Texas, Louisiana and Appalachia. Meanwhile, U.S. refineries, particularly along the Gulf Coast, are some of the most efficient and high-capacity facilities in the world. They depend on consistent offtake to remain profitable. The symbiosis is clear: Mexico needs reliable energy imports to power its economy, and the United States benefits enormously from growing Mexican demand. This dynamic has created jobs on both sides of the border, from Texas gas fields to Mexican manufacturing plants. It has also fostered deeper integration of infrastructure, with cross-border pipelines, rail links and storage facilities, with much more investment needed in the coming years. Yet this interdependence is not without risk. In recent years, political uncertainty and nationalist rhetoric have threatened to disrupt the flow of energy trade. Mexico's efforts to reassert state control over its energy sector, including revisions to electricity market rules, slow permitting for private infrastructure, and the nationalization of certain assets, have introduced friction into what was once a smooth and expanding partnership. In the U.S., political calls for energy dominance sometimes overlook the benefits of energy exports, while cross-border trade issues ranging from tariffs to environmental disputes can add further complexity. Climate-related concerns and the energy transition add another layer, as both countries seek to balance fossil fuel trade with renewable energy goals. If Mexico's economy stumbles due to political instability, energy shortages, or falling investment, demand for U.S. gas and fuel will decline. And that could spell trouble for American producers and workers who depend on that export income. Rather than retreating into nationalist positions or letting the energy relationship drift, policymakers on both sides of the border should treat U.S.-Mexico energy interdependence as a strategic asset. This means ensuring policy stability and regulatory cooperation to maintain open energy trade channels. It means investing in cross-border infrastructure and exploring joint ventures in storage, liquefied natural gas and clean energy to future-proof the relationship. It means reinvigorating the bilateral energy dialogue to manage risks and formally strengthening the energy relationship through the USMCA review. In the years ahead, Mexico will need more energy to power its ambitions, and the U.S. is uniquely positioned to supply it. But that relationship must be nurtured, not taken for granted. A strong, growing Mexico is good for the U.S. And a thriving U.S. energy sector is good for Mexico. The energy relationship that binds our countries is not just a pipeline, but a shared economic future. Let's protect it. Duncan Wood is an independent analyst and former president of the Pacific Council on International Policy. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
28-05-2025
- Business
- The Hill
Why U.S.-Mexico energy interdependence must be strengthened
Over the last decade, the U.S. has emerged as an energy superpower, not only in terms of production but also as a dominant exporter of natural gas and refined petroleum products. This transformation has redefined the U.S. trade balance in energy, turning a long-standing deficit into a robust surplus. Nowhere is this shift more consequential than in the U.S.-Mexico energy relationship. The U.S. Energy Information Administration estimates that natural gas exports to Mexico reached 199.2 billion cubic feet in January. That number is stunning when we consider that in January of 1990, the U.S. exported less than 1 billion cubic feet to Mexico, and by January 2012 was still only exporting 23.4 billion. Today, Mexico imports more than 70 percent of its natural gas from the U.S., and a significant share of its gasoline, diesel and jet fuel as well, valued at $33.63 billion in 2024. These imports are not a luxury — they are essential for Mexico's industrial growth, transportation system and power generation. For Mexico, reliable access to competitively priced U.S. energy is essential to sustaining economic growth, enabling industrial competitiveness and stabilizing the electric grid. At the same time, for the U.S., Mexico has become an indispensable customer, so much so that any downturn in Mexican demand would ripple through U.S. refineries, gas producers and the infrastructure companies that have built pipelines and terminals to serve the southern market. This is a story of mutual interdependence, yet it is too often overlooked in political and policy debates in both countries. In times of flux for U.S foreign relations, and with a Mexican government committed to the principle of energy sovereignty, it is worth recognizing that the energy trade across our shared border is one of the most strategically important economic relationships we have — and one that deserves proactive stewardship. Mexico's demand for natural gas has grown dramatically in recent years, driven by a combination of industrial expansion and the shift from oil-fired to gas-fired electricity generation. Yet domestic production has not kept pace. Pemex, the state-owned oil and gas company, continues to underperform and investment in gas exploration and production has plummeted, while private investment has struggled to gain traction amid regulatory uncertainty. As a result, imports from the United States have filled the gap, with cross-border pipeline flows reaching record highs. In 2024, the U.S. exported over 1 million barrels per day of refined petroleum products to Mexico, making it the single largest market for U.S. refiners. Mexico's aging refinery fleet cannot keep up with domestic demand for gasoline and other products. The new Olmeca refinery at Dos Bocas, Tabasco, offers hope for Mexican refining, but without ongoing investment, other Mexican refineries will continue to operate at well below their capacity. Gasoline exports from the U.S. will continue to be essential for Mexico for many years to come. The stakes are high. Mexico's manufacturing sector, including its booming automotive and aerospace industries, depends on stable and affordable energy. So does the everyday functioning of its economy. If energy supplies were to falter due to political decisions, infrastructure failures or global price shocks, Mexico's economy would slow, with cascading effects across the region. For U.S. gas producers and refiners, Mexico represents more than a convenient export market — it is a crucial buffer against domestic oversupply and price volatility. The shale revolution has unlocked massive quantities of gas in Texas, Louisiana and Appalachia. Meanwhile, U.S. refineries, particularly along the Gulf Coast, are some of the most efficient and high-capacity facilities in the world. They depend on consistent offtake to remain profitable. The symbiosis is clear: Mexico needs reliable energy imports to power its economy, and the United States benefits enormously from growing Mexican demand. This dynamic has created jobs on both sides of the border, from Texas gas fields to Mexican manufacturing plants. It has also fostered deeper integration of infrastructure, with cross-border pipelines, rail links and storage facilities, with much more investment needed in the coming years. Yet this interdependence is not without risk. In recent years, political uncertainty and nationalist rhetoric have threatened to disrupt the flow of energy trade. Mexico's efforts to reassert state control over its energy sector, including revisions to electricity market rules, slow permitting for private infrastructure, and the nationalization of certain assets, have introduced friction into what was once a smooth and expanding partnership. In the U.S., political calls for energy dominance sometimes overlook the benefits of energy exports, while cross-border trade issues ranging from tariffs to environmental disputes can add further complexity. Climate-related concerns and the energy transition add another layer, as both countries seek to balance fossil fuel trade with renewable energy goals. If Mexico's economy stumbles due to political instability, energy shortages, or falling investment, demand for U.S. gas and fuel will decline. And that could spell trouble for American producers and workers who depend on that export income. Rather than retreating into nationalist positions or letting the energy relationship drift, policymakers on both sides of the border should treat U.S.-Mexico energy interdependence as a strategic asset. This means ensuring policy stability and regulatory cooperation to maintain open energy trade channels. It means investing in cross-border infrastructure and exploring joint ventures in storage, liquefied natural gas and clean energy to future-proof the relationship. It means reinvigorating the bilateral energy dialogue to manage risks and formally strengthening the energy relationship through the USMCA review. In the years ahead, Mexico will need more energy to power its ambitions, and the U.S. is uniquely positioned to supply it. But that relationship must be nurtured, not taken for granted. A strong, growing Mexico is good for the U.S. And a thriving U.S. energy sector is good for Mexico. The energy relationship that binds our countries is not just a pipeline, but a shared economic future. Let's protect it. Duncan Wood is an independent analyst and former president of the Pacific Council on International Policy.
Reuters
12-05-2025
- Business
- Reuters
Mexico's Pemex plans to export less crude oil as new refinery starts up, official says
MEXICO CITY, May 12 (Reuters) - The trading arm of Mexico's state company Pemex, PMI, is anticipating a reduction in crude oil exports this year as more will be sent to local refineries, especially the new Olmeca refinery, a company director said on Monday. Once the country's newest refinery is fully operational and able to process 340,000 barrels per day (bpd), it will receive about 100,000 bpd of crude oil, Margarita Perez, the head of PMI, said at an event. This would lift local processing to 1.2 million bpd, she added, leaving about 400,000 bpd for export. "We have exported (diesel) from the Dos Bocas refinery, as production is starting up," Perez said, without giving details on volumes. Reuters reported in April that two tankers, opens new tab with ultra-low sulfur diesel, originally produced from crude oil in the Madero refinery but reprocessed in the Olmeca refinery, had been exported because of a lack of infrastructure.
Reuters
09-05-2025
- Business
- Reuters
Mexico's Pemex says it addressed a leak from a Gulf of Mexico pipeline
MEXICO CITY, May 9 (Reuters) - Mexican state energy company Pemex said on Friday that it addressed a hydrocarbon leak from a pipeline that transports crude oil from the Akal-C platform in the Gulf of Mexico to the maritime terminal in the port of Dos Bocas. Pemex, which had said on Wednesday evening that the cleanup was expected to be completed in the next few hours, said on Friday that "containment measures" continued and that it was preventing additional arrivals at the normally busy terminal. It came a week after an incident temporarily shut down operations at the company's new Olmeca refinery nearby.
