Page 4 - LatAmOil Week 12 2022

COMMENTARY Y
LatAmOil COMMENTAR LatAmOil

Mexico’s main oil export terminal at Dos Bocas (Image: Pemex/Schlumberger)
Pemex may change schedule

for halting crude oil exports

Mexico City is reportedly considering keeping oil export volumes at 1mn bpd

temporarily in order to earn more revenue to cover fuel subsidy expenditures

JUST four months ago, Mexico’s national oil way down to zero by the end of 2023.
company (NOC) Pemex was talking about its Romero Oropeza told reporters in Decem-
WHAT: plans to abandon the export market. ber that he had made this public commitment
Mexico City may keep oil In late December, Pemex’s CEO Octavio to phasing out exports because he backed the
exports at around 1mn Romero Oropeza was telling reporters in Mex- policies of Mexican President Andres Manuel
bpd temporarily to take ico City that the time had come for the country Lopez Obrador, who sees energy security and
advantage of the current to hang on to every drop of crude it produced. the fortunes of state-owned companies as higher
bull market for crude. He declared that the NOC intended to send all priorities than fiscal solvency. He is not the only
of its oil to its own refineries, thereby raising public figure to favour the elimination of crude
WHY: utilisation levels and fuel production, making exports; Energy Minister Rocio Nahle and other
The government could more petroleum products available to domes- allies of Lopez Obrador have also talked about
use extra export revenues tic consumers at lower prices and eliminating the benefits they expect the country to accrue
to cover the cost of
domestic fuel subsidies. the country’s long-standing dependence on as a consequence of keeping its oil off foreign
imports. markets.
WHAT NEXT: The CEO also asserted that this shift could
The delay could backfire, be accomplished quickly. Even though Mex- Changing conditions
as additional export ico has been exporting at least 1mn barrels per Four months ago, though, the geopolitical situ-
revenues may not serve day of oil since the early 1980s, he said Pemex ation looked rather different.
to fund price supports would be able to bring export volumes down to Four months ago, Russia hadn’t yet invaded
in full. 435,000 bpd by the end of 2022 and then all the Ukraine.

P4 www. NEWSBASE .com Week 12 24•March•2022