Tuesday, October 23, 2018
Mexico to Import US Crude Oil in November
Mexico importing sweet crude to compensate for the heavy crude as environmental regulations become stricter and local oil production lowers.
Q2 Technologies Team
Experts in H2S Scavenging Solutions
With decades of combined experience, the Q2 Technologies team specializes in innovative hydrogen sulfide (H2S) scavenging solutions for the oil and gas, wastewater treatment, and industrial sectors.
Pemex Secures Bakken Crude Cargoes for Pajaritos Terminal.
The trading arm of Mexican state owned oil company Pemex, PMI, is closing on multiple Panamax cargoes of light sweet Bakken to be delivered in the Pajaritos terminal through early December. US oil production from the Bakken Formation coming from Montana and North Dakota is exceeding 1.2 million barrels per day.
Four separate contracts of 350,000 bbl are being signed and details have not been disclosed yet. This is the second attempt from Pemex to import crude after failing to award a tender in October due to timing and the price expectations originally set by the company.
Declining Olmeca Production and Regulatory Shifts Drive Change
Mexico has historically relied on its domestically produced oil to process in its refineries, but environmental regulators have imposed a sulfur limit on many of those refineries that would require more light sweet crude runs. Olmeca crude production has been trending downward, leaving little available for domestic consumption.
A Strategic Shift in Mexico’s Refining Approach
The tenders mark a turning point in an initiative developed more than three years ago for Mexico to begin importing light sweet crude from the US to balance out its increasingly heavy crude production.
How Q2 Technologies Supports Crude Optimization
We at Q2 Technologies can help you maximize the value of your barrel by treating your oil with our Pro3® non-amine scavenger to remove H2S. Contact us to discuss how we can help you.
FAQs
Bakken crude is a type of light, sweet crude oil extracted from the Bakken Formation, a rock unit located in the Williston Basin. This basin stretches across parts of North Dakota, Montana, and Canada. Known for its low sulfur content and high API gravity, Bakken crude is valued for its ease of refining and high yield of valuable products like gasoline and diesel.
Pro3® is a non-triazine H2S scavenger developed by Q2 Technologies to effectively and safely remove hydrogen sulfide from crude oil. For crude oil processors, using Pro3® means improved safety during handling and transport, protection of equipment from corrosion, and compliance with regulatory standards for H2S content. Its fast-acting, efficient chemistry ensures that the treated crude is safer and more marketable, especially as demand grows for cleaner, low-sulfur oil sources.
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