EDGAR TOWN: The Obama administration approved limited crude oil trading with Mexico on further easing the longstanding U.S. ban on crude exports that has drawn consternation from Republicans and energy producers.Mexico’s state run oil company Petroleos Mexicanos, or Pemex, has sought to import about 100,000 barrels of light crude a day and proposed a deal last year in which Mexico would trade its own heavier crude for lighter U.S. crude.
A major crude exporter for decades, Mexico has seen its oil production fall in recent years.The license applications to be approved by the U.S. Commerce Department allow for the exchange of similar amounts of U.S. and Mexican crude, said a senior Obama administration official, who wasn’t authorized to comment by name and requested anonymity.
The official didn’t disclose whether all 100,000 barrels requested would be allowed.While the Commerce Department simultaneously rejected other applications for crude exports that violated the ban, the move to allow trading with Mexico marked a significant shift and an additional sign that the Obama administration may be open to loosening the export ban.
Exchanges of oil are one of a handful of exemptions permitted under the export ban put in place by Congress.Many in northeast Oklahoma’s business community are among those pushing for the change. Late last month, the CEO of Tulsa based WPX Energy, Rick Muncrief, testified before Congress that the ban should be lifted.
