Tamarack Valley Energy Ltd T.TVE

Mexico cutting oil exports

[mako88sb]

Rafi Tahmazian is very bullish on oil prices because of prolonged supply issues that will go on for some time. He also mentioned that Mexico announced recently that its cutting oil exports in 2022 by 50%. In 2023 they won’t export any oil at all. Found a link about it from Dec 28/2021:

www.aljazeera.com/amp/economy/2021/12/28/mexico-plans-to-end-oil-exports-in-2023-to-reach-self-sufficiency

[Konaboy]

Isn't this just a wash in terms of global supply and demand, tho?  They are basically just saying they are going to do their own refining. There could be changes to demand/supply profiles between a few other countries, tho.  I don't know enough about crude grading to go any deeper, but it could mean increased import demand to feed US refineries, from Canada or others.

[fishbeecee]

The reason that this is important is because Mexico supplied heavy crude to the US Gulf coast for refining. It was the main source of crude for those refineries. Now without that supply they have to get it from somewhere. Canada is the only other source in North America.

[Konaboy]

Interesting, found an EIA table for 2020 showing daily US imports from MEX at 550K, and exports at 1,000K. https://www.eia.gov/tools/faqs/faq.php?id=727&t=6 This tells me US refineries need an extra 450K barrels a day of imports from "somewhere else" to maintain the equilibrium with Mexico.  And this could be an even larger number depending on what the exports are, given the