Page 7 - LatAmOil Week 27 2022

LatAmOil MEXICO LatAmOil

Pemex has retreated from an earlier plan to reduce oil exports to zero by the end of 2023 (Photo: Pemex)

Mexican oil exports to North America up

significantly in May, Pemex data show

MEXICO’S national oil company (NOC) North America rose by 5% m/m and 5% y/y.
Pemex has reported that oil exports to North (Presumably shipments to North America were
America increased substantially in May of this a more attractive option because of the smaller
year, both in comparison to the previous month distance – and therefore the lower transport
and in comparison to May 2021. costs – involved.)
According to data cited by Hart Energy, Pemex’s oil export policy has undergone
Pemex exported some 740,000 barrels per day some fluctuations of its own in recent months.
(bpd) of crude to buyers in “America,” its collec- Late last year, the company’s CEO Octavio
tive designation for the US and Canada (though Romero Oropeza declared that he would back
the US is by far a larger market for Mexican oil), President Andres Manuel Lopez Obrador’s plan
in May. This figure represents a 25% rise on the to halt crude oil exports by the end of 2023 in
April 2022 figure of 594,000 bpd and a 32% rise order to eliminate the country’s reliance on
on the May 2021 figure of 561,000 bpd, Hart imported petroleum products. Specifically, he
Energy said. declared that the NOC would cut oil exports to
It is also the highest monthly export figure in 435,000 bpd in 2022 and then halt exports alto-
this category since May 2020, when exports to gether over the course of 2023.
North America reached 871,000 bpd. But Lopez Obrador signalled in the first week
Pemex’s data show that the uptick in ship- of March that he might open the matter up for
ments to the US and Canada came directly at discussion, saying that his government aimed
the expense of Mexican oil exports to European to use extra revenues earned from higher oil
and Asian markets. The NOC says it sent 32,000 prices to compensate Mexican consumers for
bpd of oil to customers in Europe and 192,000 rising fuel prices. The following week, Energy
bpd to customers in Asia in May. By contrast, Minister Rocio Nahle, one of his closest political
it delivered 100,000 bpd to Europe and 330,000 allies, told Bloomberg that rising oil prices had
bpd to Asia in April 2022 and 135,000 bpd to led Mexico City to review its plan for winding
Europe and 227,000 bpd to Asia in May 2021. down crude exports.
Hart Energy linked the rise in the volume of Then in early April, the president announced
crude exported to North America to trends in that Pemex would be reducing oil sales to for-
world crude oil prices, explaining that Pemex eign customers, but to a much lesser degree.
was now reaping higher returns on shipments The cuts will only bring export volumes down
to the US and Canada than on deliveries to from the historical baseline of about 1mn bpd
more distant markets. It pointed to fluctuations to 850,000 bpd, he told reporters. This plan will
in average market prices in May 2022, noting allow Pemex to use extra earnings to cover the
that the sale price of exports to Asia had risen cost of rehabilitating its refineries and to help
by 3% month on month and by 5% year on year, consumers by offsetting the rising cost of fuel
while the sale price of exports to Europe and imports, he said. ™

Week 26 30•June•2022 www. NEWSBASE .com P7