Exporting US Oil to Mexico Mexico could become a major export destination for surplus US light crude oil, despite being one of the largest oil suppliers to the US, mainly of heavy oil. If structured as an exchange for other barrels, such exports might not require re-writing US oil export regulations, unlike sales to non-neighboring countries. Two of the biggest energy stories of the last twelve months have been the reform of Mexico’s oil sector after 75 years of state monopoly and the US oil industry’s drive to gain approval to export a growing surplus of domestic light crude oil. The prospect of exporting US oil to Mexico connects these developments in a surprising way. It should make sense geographically and economically, though regulatory hurdles remain. Yet it could also increase tension between US oil producers and refiners over the merits of exporting crude versus refined products. At first glance, the idea […]