Page added on July 8, 2018
Mexican President-elect Andres Manuel Lopez Obrador will seek to end the country’s massive fuel imports, nearly all from the U.S., during the first three years of his term while also boosting refining at home.
The landslide winner of the country’s recent election told reporters on July 7 before attending private meetings with members of his future cabinet that he will also prioritize growing crude oil production domestically, which has fallen sharply for years.
“The objective is that we stop buying foreign gasoline by the half way point of my six-year term,” said Lopez Obrador, repeating a position he and his senior energy advisor staked out during the campaign.
“We are going to immediately revive our oil activity, exploration and the drilling of wells so we have crude oil,” he said.
On the campaign trail, the leftist former mayor of Mexico City pitched his plan to wean the country off foreign gasoline as a means to increasing domestic production of crude and value-added fuels, not as a trade issue with the U.S.
Lopez Obrador also reiterated on July 7 his goal to build either one large or two medium-sized oil refineries during his term, which begins on Dec. 1.
While he said the facilities will be built in the Gulf coast states of Tabasco and possibly Campeche, he has been less clear on how the multibillion-dollar refineries would be funded.
So far this year, Mexico has imported an average of about 590,000 barrels per day (bbl/d) of gasoline and another 232,000 bbl/d of diesel, as output at the country’s domestic refineries has steadily declined.
Foreign gasoline imports have grown by nearly two-thirds, while diesel imports have more than doubled since 2013, the first year of outgoing President Enrique Pena Nieto’s term, according to data from national oil company Pemex.
Meanwhile, the six oil refineries in Mexico owned and operated by Pemex are producing at far below their capacity, or an average of 220,000 bbl/d of gasoline so far this year.
Gasoline production at the facilities is down 50% compared to 2013, and domestic gasoline output only accounts for slightly more than a quarter of national demand from the country’s legions of motorists.
During the campaign, the two-time presidential runner-up also promised to strengthen Pemex. He also was sharply critical of a 2013 constitutional energy overhaul that ended the company’s monopoly and allowed international oil majors to operate fields on their own for the first time in decades.
The overhaul was designed to reverse a 14-year-long oil output slide and has already resulted in competitive auctions that have awarded more than 100 exploration and production contracts to the likes of Royal Dutch Shell and ExxonMobil.
“What’s most important is to resolve the problem of falling crude oil production. We’re extracting very little oil,” Lopez Obrador said.
During the first five months of this year, Mexican crude oil production averaged about 1.9 MMbbl/d, a dramatic drop compared to peak output of nearly 3.4 MMbbl/d in 2004, or 2.5 MMbbl/d in 2013.
26 Comments on "Mexico’s Next President Aims To End Foreign Fuel Imports In Three Years"
Makati1 on Sun, 8th Jul 2018 6:34 pm
And Americans believe that they are loved around the word…and they arfe not even wanted in their own backyard. I wonder why? LOL
“”Shelter In Place”: All Hell Breaks Loose In Haiti As Violent Mobs Try To Murder Trapped American Tourists”
https://www.zerohedge.com/news/2018-07-08/shelter-place-all-hell-breaks-loose-haiti-violent-mobs-try-murder-trapped-tourists
Slip slidin’…
Davy on Sun, 8th Jul 2018 6:37 pm
Take that article in 3rd world because when hell breaks loose in the P’s I imagine that is your ass too. LMFAO. This is a fun night with all the crazies out.
Makati1 on Sun, 8th Jul 2018 6:51 pm
The Us Civil War 2 is building. “”We Live In A State Of Emergency”: Chicago Protesters Shut Down Highway To Demand Americans Disarm”
https://www.zerohedge.com/news/2018-07-08/we-live-state-emergency-chicago-protesters-shut-down-highway-demand-americans
With more than one gun per capita, it will be a bloody one. Summer is heating up!
Slip slidin’…
Makati1 on Sun, 8th Jul 2018 6:55 pm
Well, Davy, I see zero signs of anything like that happening here. This is NOT a divided, drugged up, immoral, bankrupt, multi-cultural mess that America is. Things are getting better here. Not so in the Us. The Ps is 85% Catholic, not prone to division. Culture and family is still important here. The Us has no culture and families are fragmented.
I’m safe, but you are not. LOl
Makati1 on Sun, 8th Jul 2018 6:57 pm
I can post that article for a third time if you missed the reason I posted it twice. Reality is a bitch. LOL
Davy on Sun, 8th Jul 2018 6:58 pm
3rd world the P’s is an overcrowded 3rd world country and when food insecurity hits your ass may be grass. LMFAO
Davy on Sun, 8th Jul 2018 7:00 pm
3rd world, quit wasting space with your noise. People can get all this news over on Zerohedge.
MASTERMIND on Sun, 8th Jul 2018 7:07 pm
Madkat
They were protesting gun violence..Geez you dumb elderly loons will believe anything fake news tells you..
Makati1 on Sun, 8th Jul 2018 7:21 pm
Mm, I see what is happening there in crazy land. How do you think a civil war starts? How about dumping a load of tea into a harbor? How about a few shots fired at Fort Sumter? Or is your education so bad that you have no idea what I am talking about?
Try reading about the 60s riots and what happened then. Multiply that by at least one thousand and you will see how close you are to another Civil War.
Makati1 on Sun, 8th Jul 2018 7:24 pm
“3rd world, quit wasting space with your noise. People can get all this news over on Zerohedge.”
Just spredin’ the good word, Davy. If it stresses you out, so be it.
“…quit wasting space with your noise…”Maybe you should take your own advice hypocrite! LOL
MASTERMIND on Sun, 8th Jul 2018 7:25 pm
Madkat
We don’t have enough time to regress into a civil war..Within the next decade America and the rest of the world will have totally collapsed..End of story..
https://imgur.com/a/pYxKa
Go Speed Racer on Sun, 8th Jul 2018 11:25 pm
The Mexicans would have more fuel,
if they woiild all eat more
Bean Burritos with hot sauce.
The resulting natural gas could be
compressed and the cars retrofitted
to be fueled by natural gas.
ohanian on Mon, 9th Jul 2018 12:00 am
If Mexico wants to refine their own crude oil in Mexico then THEY MUST ASK PERMISSION FROM PRESIDENT TRUMP FIRST.
Makati1 on Mon, 9th Jul 2018 12:06 am
History is not your thing is it MM? What do you mean by “evolve”? It is already in process. It will just accelerate from here. It could be full blown by Fall. You better hope not because, if it happens, BAU in the Us will end and the rest of the world will just sit back and watch the it burn.
Plantagenet on Mon, 9th Jul 2018 12:21 am
Mexico’s oil production peaked years ago. Their new president is engaging in magical thinking if he thinks he can reverse that. Cheers!
Antius on Mon, 9th Jul 2018 7:10 am
Dominic Raab has been named by the ghastly Theresa May as the new Brexit Secretary. Here is an extract from Wiki:
‘Biography
Raab grew up in Gerrards Cross, Buckinghamshire, the son of a Czech-born Jewish father who came to Britain in 1938 as a refugee.[5] Raab attended Dr Challoner’s Grammar School in Amersham before Lady Margaret Hall, Oxford where he read Law.[6] After graduating, he gained a master’s degree at Jesus College, Cambridge. Raab was initially a solicitor at Linklaters in London. He spent the summer of 1998 at Birzeit University near Ramallah where he worked for one of the principal Palestinian negotiators of the Oslo peace accords, assessing World Bank projects on the West Bank.’
https://en.wikipedia.org/wiki/Dominic_Raab
Sounds like a fine ‘British’ chap who will put the interests of ‘his’ people first in any upcoming negotiations.
Shortend on Mon, 9th Jul 2018 8:24 am
Gringo go back home…we don’t need your gas or Wall!
twocats on Mon, 9th Jul 2018 8:51 am
this is primarily about refining oil, not production. right now mexico exports crude and imports refined products. seems stupid because it is. too little too late to save mexicos collapsing economy but might as well.
Sissyfuss on Mon, 9th Jul 2018 8:58 am
When does Obrador start wearing a MMGA hat?
JuanP on Mon, 9th Jul 2018 8:59 am
Twocats is right! This is too little too late! I don’t know if it makes sense to build these refineries now, it probably doesn’t. I think Mexico is declining already and has been for at least a couple of decades. They are close to the point of no return, IMO. Mexico is one of the worst positioned Latin American countries in a collapsing world. Things will get brutal there sooner than in other Latin American countries. It is an inevitable consequence of the resource curse.
JuanP on Mon, 9th Jul 2018 9:11 am
Mak, I suspect that some Americans living abroad may face some bad moments once they lose their government’s support when the USA collapses and its military is forced to retreat. I expect they will be treated like they treated others. Those that have friendly, respectful relations with their neighbors will be sheltered and protected by them and allowed to go on with their lives, but the arrogant bullies will face the consequences of their actions. What goes around comes around!
MASTERMIND on Mon, 9th Jul 2018 9:35 am
Juanp
When the US collapses the whole global economy does as well..The world economy is like a sewer and all pipes lead through New York.
Get a brain you Moran!
TurningPoint on Mon, 9th Jul 2018 9:39 am
What are those insane comments about the third world? Mexico’s oil production is in terminal decline right now but they are still okay for now. Mexico is a member of the G20. If you Googled Nominal GDP, you’d find Mexico is currently ranked as the 14th largest economy in thew world. That is out of almost 200 countries on the planet. It’s about on par with the Spanish and Australian economies. If you went by per capita GDP, Mexico ranks around ranks about 65 or something. Their problem is they lack egalitarianism that the U.S. has. Of course, we’re becoming less egalitarian through time. Spain ranks abut 32 and Australia ranks around 20. In other words, I’d say if Mexico is third world, than maybe is Spain should also be considered third world. If you go by Purchasing Power Parity, the U.S. is not the richest country in the world and China is about equal or greater than us economically. Going by Purchasing Power Parity rather than per capita GDP, Mexico ranks about 11 or 12.
Mexico is NOT a third world country right now.
Duncan Idaho on Mon, 9th Jul 2018 10:45 am
What are those insane comments about the third world?
Lived in Mexico last Winter.
You think I want to go to The States?
I love it here you crazy gringo!
MASTERMIND on Mon, 9th Jul 2018 10:53 am
Don’t let Donald Trump dance on the homeland!
https://pbs.twimg.com/media/DhoawGCXUAA6HjF.jpg
Boat on Mon, 9th Jul 2018 5:43 pm
How long is the list of countries wanting to develope and refine their own resources. They subsequently fail and come crawling back for help. Even China and Russia are no match for US exceptionalists with their ever advancing tech. This is why advanced capitalism creates real results from an excellent work force. Talk yearning and blame don’t survive in the real world.