Pemex expects to cancel oil exports
Pemex expects to cancel oil exports
Pemex expects to cancel oil exports
SEP. 29 10:58 A.M. ET Mexican state oil monopoly Petroleos Mexicanos said it expects shipments of 10 million barrels in crude oil exports to be canceled after Hurricane Rita roared through the U.S. Gulf Coast last weekend.
Despite the disruption, Pemex said Wednesday the company will maintain its crude production of roughly 3.4 million barrels a day, since the company has been able to store the homeless crude or find new buyers for it in Europe, Asia and even parts of the United States.
Pemex is the world's third-biggest oil producer and a major supplier to the United States. However, the company lacks refining capacity to process all of its crude, so it exports more than half of its daily production, mostly to the United States.
According to Pemex financial documents, the company has contracts to send 370,000 barrels a day of crude to Texas refineries affected by Rita.
Exxon Mobil Corp. has reportedly declared force majeure on half a dozen cargoes of Mexican Maya crude. Pemex has contracts to send 65,000 barrels daily to Exxon's 557,000 barrels-a-day Baytown refinery, which is still restarting.
The worst-hit of Pemex's Texas clients is Valero Energy Corp.'s 255,000 barrels-a-day Port Arthur refinery, where the Mexican company sends 165,000 barrels daily. Valero hopes the facility will be running again by late-October.
Because it lacks refining capacity to meet domestic gasoline demand, Pemex imports about 150,000 barrels of the fuel a day, or nearly a quarter of the gasoline consumed in the country.
The shipment disruptions caused by Rita's weekend sweep through the U.S. Gulf Coast are in addition to the 130,000 barrels a day in crude deliveries Pemex has had to divert from Chevron Corp.'s Pascagoula, Mississippi, refinery after Hurricane Katrina.
Chevron plans to partially restart the 325,000 barrel-a-day Pascagoula refinery in mid-October and to have it fully operational by mid-November.
A dozen refineries accounting for 18 percent of U.S. capacity remain shuttered in the wake of Hurricanes Rita and Katrina and have no firm, near-term date for restarting.
Pemex has already substantially increased the discount it offers on its heavy Maya crude, which requires special technology to refine. Many of those specialized refineries are along the U.S. Gulf Coast
Pemex expects to cancel oil exports
SEP. 29 10:58 A.M. ET Mexican state oil monopoly Petroleos Mexicanos said it expects shipments of 10 million barrels in crude oil exports to be canceled after Hurricane Rita roared through the U.S. Gulf Coast last weekend.
Despite the disruption, Pemex said Wednesday the company will maintain its crude production of roughly 3.4 million barrels a day, since the company has been able to store the homeless crude or find new buyers for it in Europe, Asia and even parts of the United States.
Pemex is the world's third-biggest oil producer and a major supplier to the United States. However, the company lacks refining capacity to process all of its crude, so it exports more than half of its daily production, mostly to the United States.
According to Pemex financial documents, the company has contracts to send 370,000 barrels a day of crude to Texas refineries affected by Rita.
Exxon Mobil Corp. has reportedly declared force majeure on half a dozen cargoes of Mexican Maya crude. Pemex has contracts to send 65,000 barrels daily to Exxon's 557,000 barrels-a-day Baytown refinery, which is still restarting.
The worst-hit of Pemex's Texas clients is Valero Energy Corp.'s 255,000 barrels-a-day Port Arthur refinery, where the Mexican company sends 165,000 barrels daily. Valero hopes the facility will be running again by late-October.
Because it lacks refining capacity to meet domestic gasoline demand, Pemex imports about 150,000 barrels of the fuel a day, or nearly a quarter of the gasoline consumed in the country.
The shipment disruptions caused by Rita's weekend sweep through the U.S. Gulf Coast are in addition to the 130,000 barrels a day in crude deliveries Pemex has had to divert from Chevron Corp.'s Pascagoula, Mississippi, refinery after Hurricane Katrina.
Chevron plans to partially restart the 325,000 barrel-a-day Pascagoula refinery in mid-October and to have it fully operational by mid-November.
A dozen refineries accounting for 18 percent of U.S. capacity remain shuttered in the wake of Hurricanes Rita and Katrina and have no firm, near-term date for restarting.
Pemex has already substantially increased the discount it offers on its heavy Maya crude, which requires special technology to refine. Many of those specialized refineries are along the U.S. Gulf Coast
posted by Marcel at 1:51 PM
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