Crude oil swaps with Mexico could yield mercantile and environmental benefits

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U.S.-Mexico wanton oil swaps authorized final month by a U.S. Department of Commerce’s Bureau of Industry and Security will approaching engage exchanges of U.S. light honeyed wanton for Mexican complicated green wanton that is already being exported to a United States. The swaps, that are supposing for underneath longstanding regulations ruling U.S. wanton oil exports, are approaching to be both economically and environmentally profitable to both parties since of differences in wanton oil qualities as good as differences in any country’s petroleum refineries. The swaps will concede a larger grade of operational potency in both Mexico and a United States while permitting for increasing supply of lower-sulfur gasoline from Mexican refineries.

Image credit: U.S. Energy Information Administration, formed on Chevron wanton test library

Image credit: U.S. Energy Information Administration, formed on Chevron wanton test library

With poignant coking and desulfurization capacity, U.S. Gulf Coast refineries are befitting to routine complicated green crude, though most of a new wanton oil prolongation gains in a United States have been light honeyed crudes entrance from plays such as Eagle Ford. There are 6 vital refineries in Mexico. Three of them, representing 42% of sum capacity, have coking units and can furnish lower-sulfur gasoline. The other 3 refineries do not have cokers and associated upgrading units. Consequently, they furnish usually singular amounts of lower-sulfur products and are not well-configured to routine complicated green wanton oil. In 2014, a 6 refineries processed 1.2 million barrels per day (b/d) of wanton oil, that enclosed 658,000 b/d of Isthmus, a middle green crude, and 497,000 b/d of Maya, a complicated green wanton blend.

Although a full effects of wanton oil transformation in refineries can be complex, EIA analyzed a relations product yields and a sulfur levels of a ensuing products for 3 Mexican wanton oils (Maya, Isthmus, and Olmeca) along with a same information for U.S. wanton oil and condensate constructed from a Eagle Ford arrangement of southern Texas. As shown in a figure, both product yields and a sulfur levels of a solution products change among a opposite wanton oils. Notably, while Olmeca has identical product yields to some of a Eagle Ford wanton constructed in a United States, a Eagle Ford wanton has reduce sulfur content.

The disproportion in sulfur calm is quite critical for a naphtha cut, that is blended or serve polished to make engine gasoline. Mexico hopes to grasp a spin of 30 tools per million (ppm) for all gasoline nationwide; fuel assembly this sulfur selection is now accessible usually in vital Mexican civil areas or in reward fuel.

The prejudiced transformation of Eagle Ford wanton for Mexican crudes (such as Isthmus and Olmeca that are run possibly true or blended with heavier Mexican crudes such as Maya) in Mexican refineries would giveaway adult sulfur dismissal ability in a Mexican enlightening system. This would, in turn, concede that ability to be used to furnish some-more lower-sulfur gasoline than is now possible. Any increasing supply of lower-sulfur gasoline to Mexico’s engine gasoline market, that consumed 761,000 b/d in 2013, would outcome in reduced sulfur emissions and other environmental benefits.

More research on a intensity mercantile and environmental advantages of swapping wanton oils with Mexico is accessible in This Week in Petroleum.

Source: EIA