Sheinbaum sees Mexico’s energy policies protecting Pemex from possible Trump tariffs

Mexican President Claudia Sheinbaum said Friday that the country's energy sovereignty policies would mute the impact of any possible US tariffs on crude oil imports from state-owned oil company Pemex.

US president-elect Donald Trump has suggested levying tariffs of 25% on imports from Mexico.

"Mexico already exports much less oil," Sheinbaum said at her morning press conference in Mexico City. "This is part of a project of sovereignty, for the oil that we produce to be refined in Mexico and sold in Mexico."

Pemex recently said that its monthly crude oil exports in 2024 have fallen to an average of 792,000b/d, down from 1.03Mb/d in 2023.

The American Fuel & Petrochemical Manufacturers (AFPM) association estimates that about 11% of crude imports in the US come from Mexico, while about 60% come from Canada.

Pemex's crude exports reached a high of 1.87Mb/d in 2004 under the administration of former president Vicente Fox, when most of Mexico's crude was sent to refineries in the US.

In contrast, Sheinbaum said her government and that of her predecessor Andrés Manuel López Obrador had decided to keep more of Mexico's oil output within the country. 

Their policy has been to use the country's crude oil to feed domestic refineries and produce greater volumes of fuels such as gasoline and diesel.

The ramp-up of operations at the new US$20bn Olmeca refinery in the port of Dos Bocas will increase the proportion of Mexico's crude output that is refined domestically.

"The large majority of the oil that we produce is refined in Mexico and the second train at the Olmeca refinery is practically operational," Sheinbaum said.

Coker plants nearing completion at the refineries of Tula and Salina Cruz will increase Mexico's domestic production of gasoline, she added.