Page 7 - LatAmOil Week 27 2022
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                               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. ™



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