Mexico's state-run oil company Pemex has begun shipping crude oil to refineries on the U.S. West Coast - the first time it has shipped there for the last six years - according to data by the U.S. and by Reuters, which covers the story.
Last year, the oil company shipped only 100,000 barrels per day of Isthmus, a crude oil, throughout the world. However, in January and February, it sold 340,000 bpd to Valery Energy in California, as well as 350,000 bpd to Tesoro Corp in San Francisco in March.
Typically, the regions that get Isthumus from Pemex are the Gulf Coast, like places in Texas, and East Coast, such as in Philadelphia.
According to Reuters, Pemex is changing its strategy, and therefore beginning to send oil to the West Coast again. The company has announced it plans to diversity its client base. Not only is it shipping to California, but Pemex has begun shipping oil to Europe and the Hawaiian islands.
The benefits of Pemex for U.S. companies expanding to Mexico
Chevron may be the first company to directly benefit from the relaxed regulations on energy in Mexico, which have allowed Pemex to make deals with foreign companies to help the company drill in unconventional oil sites like shale fields, according to Bloomberg.
Other companies will benefit indirectly from the cheaper cost of energy once foreign companies begin to invest in the necessary facilities and drill in earnest.
Chevron has a deal in the works with Pemex to explore and drill in deep water, shallow water and shale regions, Bloomberg reported.
"We are not here to replace Pemex," said Ali Moshiri, who works for Chervron on exploration and production projects between Argentina and Angola as president of the Latin America and Africa divisions. "We are not here to change their strategy. We are here to complement what they are doing. […] We look for the opportunity that brings the most value to the Mexican government, the Mexican people, and our shareholders."
Moshiri further added that Chevron is fully capable of any kind of oil drilling, whether shale, deep sea or shallow sea, and it looks forward to the new opportunities it will have extracting oil in Mexico.
The result of these changes in the energy sector may ultimately be cheaper energy for Mexico and more money that comes to Mexico through foreign oil and gas investments. Those wanting to hitch a ride on these changes may do well to approach an offshore shelter company to ask about building a factory in Mexico.