Fuel in Mexico after Harvey
Since Mexico is importing about 55% of its fuel right now, I am thinking a couple of gerry cans may be in order since I am crossign in mid Oct. I remember the closures last December
Forum Discussion
Crossing with filled cans is a federal law no-no. All the signs in Aduana offices clearly state it, and griping about getting caught has been a travel forum point for years. Shell Pemex Deer Park TX refinery is still operating and that refinery is just East of Houston near the ship channel. No flood there because of drainage canals.
The main pipeline network enters Mexico at Laredo and El Paso. This network connects to USA West Coast refineries in Los Angeles, the San Francisco Bay Area, and Anacortes, WA.
So shortages may not be as ominous a threat as they may appear on the surface.
Shell Oil, Chevron, and Exxon annual refinery maintenance turnrounds are not due to appear until late Sept, early October.
UPDATE
Several Texas refineries went off-line today 08/30/2017
Two things to consider. USA gasoline inventories are at an all time high. It may not matter "why" as far as reduced production but because so many refineries across so wide an area chose a particular day to shut down after the storm passed, may be seen as "quite peculiar". Areas surrounding the refineries still have electrical power. Oil companies having been moaning about low pump prices in the USA. I was standing twenty feet away from A.J. Woods, manager (of all) Shell Oil Co. refineries when he said "We're going to fix their ass!" in response to US congress ending of the USA crude oil depletion tax allowance in 1972. Immediately afterward gasoline prices surged and never looked back.
The hated Gasolinaza in Mexico backed down Mexican refinery output over 30%. Even though ramping production back up will stress old process units, if Pemex elects to not increase production it's going to cause a political fury if there is a shortage of fuel down here. Pemex also has the option of purchasing more Japanese refined gasoline
More certain is a sharp spike in USA gasoline prices. Fifty cents a gallon? A dollar per gallon? Have to wait and see.
The main pipeline network enters Mexico at Laredo and El Paso. This network connects to USA West Coast refineries in Los Angeles, the San Francisco Bay Area, and Anacortes, WA.
So shortages may not be as ominous a threat as they may appear on the surface.
Shell Oil, Chevron, and Exxon annual refinery maintenance turnrounds are not due to appear until late Sept, early October.
UPDATE
Several Texas refineries went off-line today 08/30/2017
Two things to consider. USA gasoline inventories are at an all time high. It may not matter "why" as far as reduced production but because so many refineries across so wide an area chose a particular day to shut down after the storm passed, may be seen as "quite peculiar". Areas surrounding the refineries still have electrical power. Oil companies having been moaning about low pump prices in the USA. I was standing twenty feet away from A.J. Woods, manager (of all) Shell Oil Co. refineries when he said "We're going to fix their ass!" in response to US congress ending of the USA crude oil depletion tax allowance in 1972. Immediately afterward gasoline prices surged and never looked back.
The hated Gasolinaza in Mexico backed down Mexican refinery output over 30%. Even though ramping production back up will stress old process units, if Pemex elects to not increase production it's going to cause a political fury if there is a shortage of fuel down here. Pemex also has the option of purchasing more Japanese refined gasoline
More certain is a sharp spike in USA gasoline prices. Fifty cents a gallon? A dollar per gallon? Have to wait and see.
