Texas Tech University

Texas oil industry experts say Mexico's plan to halt fuel imports won' have immediate impact

JUAN LUIS GARCÍA HERNÁNDEZ

August 14, 2018

THE TEXAS TRIBUNE - Mexican President-elect Andrés Manuel López Obrador has vowed to halt the import of gasoline and diesel from the United States and other countries by 2021.

...López Obrador's plan calls for the construction of a refinery in his home state of Tabasco in southeastern Mexico and the rehabilitation of six existing refineries to increase the amount of fuel they can produce. That would cost a combined $11.3 billion.

"It's very optimistic," said Texas Tech University economics professor Michael D. Noel. "I will say that in terms of Texas refineries the impact in the short term is likely to be very, very low, and the reason is that you can't build a refinery overnight. Those things take a long time."

Noel said Texas refineries could stand to benefit from increased Mexican energy production if it outpaces refinery construction, which may require the country to export fossil fuels to the United States for processing.

Read the full story