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Industry News

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 suifide (H2S) scavenging solutions for the oil and gas, wastewater treatment, and industrial sectors.

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.

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.

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.

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.

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