Petroleos Mexicanos Crude Oil Proposal to DOC
January 12, 2015
Petroleos Mexicanos, a government owned Mexican oil company, has requested that the Department of Commerce allow 100,000 barrels of light crude oil to be exported to Mexico. A crude oil export ban was put into effect in 1975 in response to an Arab oil embargo. However, as of December 30, 2014, U.S. producers were permitted to export condensate crude oil that has been lightly processed. If Commerce approves the proposal, the U.S. would receive Mexican heavy crude oil in return for the ultralight crude oil. Petroleos Mexicanos plans to combine the U.S. light crude oil with the heavier Mexican crude oil, which will improve their refining process. By combining the products, the Mexican entity will be able to decrease its output of fuel oil and sulfur oil.
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