Canadian Oil Is Building A Wall And Mexico Is Paying For It

Oilprice.com ^ | 25-10-2016 | MawMaw

[bananaman22]

Mexico and Canada have been waging a silent battle for market share in the U.S. crude oil refining market. Since 2006, crude oil exports from Canada and Mexico to the U.S.’ largest refining complex in the U.S. Gulf Coast (Petroleum Administration for Defense Districts 3 or “PADD 3” or “Gulf Coast”) has changed dramatically.

A Crude History: Canada vs. Mexico

Historically, Canada and Mexico have both brought significant oil supplies to refiners in the U.S. In 2006, Mexico and Canada were both exporting 1.7 million barrels per day of oil to the U.S.; however, Mexican and Canadian crude oil market share was fairly segregated – Mexico dominated the Gulf Coast and Canada dominated the U.S. Midwest (“PADD 2”).

The 2008 financial crisis led to a major shift in Mexican and Canadian oil exports to the U.S., with Canadian oil at a distinct advantage. Mexico was already facing a decline in oil production from 2006 and the country would see oil production fall by 19 percent into 2009; meanwhile, Canadian crude remained unchanged.

[Gay State Conservative]

Canada is our friend....Mexico most assuredly isn’t.I’d much rather have Canadian gas in my tank than Mexican.