Expanding U.S. Exports Could Support Mexican Shale

Keith Kohl

Written By Keith Kohl

Posted June 16, 2015

Mexico’s PEMEX and our own ExxonMobil are among the big names ready to make a new deal for oil trade.

Our refineries, especially in Louisiana and the Gulf area, are made to process heavy crude oil. Unfortunately, most of our more prolific shale plays produce more light sweet oil than anything.

Meanwhile, Mexico is developing their own shale boom. And what have they got? Heavy crude.

Below are some existing possible pipeline routes between Mexico and the U.S.:

Mexican Infrastructure

Trades would be in both countries’ favor. The U.S. would strengthen their own refinery capacity and usefulness, keeping many companies profitable in the ongoing volatile oil market. And exporting to Mexico would keep up good political relations.

Mexico would benefit from both the revenue from their own exports, and from the infrastructure additions that would be necessary to carry these oil trades out. As they delve deeper into their own shale reserves, they’ll be happy to learn from northern neighbors.

Why not enjoy some mutual benefits while the market recovers?

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