Crude Oil Exports from the United States to Mexico

Abstract

The expansion of the oil and natural gas industry in the United States and Canada has had major repercussions on the hydrocarbons market in Mexico, displacing imports of Mexican crude and driving exports of natural gas and petroleum products to Mexico. These trends will grow stronger in the medium term. The United States prohibits exports of crude oil and regulates natural gas exports. The increasing surpluses of extra light crude in the country have stoked public discussion on liberalizing these exports. As a result, the paper explores the possibility of exporting this type of crude to Mexico to reduce the production of fuel oil in Mexican refineries, instead producing gasoline and diesel.