Falling production of motor gasoline, diesel and other refined products at Mexico’s aging refineries has created a south-of-the-border supply void that U.S. refiners and refined-products marketers and shippers are all too eager to fill. At the same time, the ongoing liberalization of Mexican energy markets is finally allowing players other than state-owned Petróleos Mexicános (Pemex) to become involved in motor-fuel distribution and retailing. The results of all this? U.S. exports of gasoline and diesel to Mexico are up 60% from two years ago, and U.S. companies are scrambling to develop or acquire the infrastructure needed to deliver refined products to Mexican consumers. Today, we begin a new series on the increasing role of U.S. companies in supplying, distributing and retailing motor fuels in Mexico, and on the new transportation and terminalling infrastructure being built to support that growth.
U.S.-Mexico hydrocarbon trading and Mexican energy deregulation have been frequent topics in the RBN blogosphere. In With a Little Help From My Friends, we discussed declining Mexican crude oil production and the collapse of Mexican crude exports to the U.S., which fell to only 372 Mb/d in September 2017 — one-fifth the 2006 peak of nearly 1.8 MMb/d, and the lowest level in more than 35 years. Natural gas exports from the U.S. to Mexico have been covered extensively too (It Takes Two, Coming Around Again and I Just Can’t Make No Connection), and in the Enciende Mi Fuego/Light My Fire blog series, we looked at rising exports of U.S. liquefied petroleum gas (LPG). And then there’s gasoline and diesel. In Borderline, we detailed how Mexico has become reliant on motor fuels refined in the U.S. to supplement its aging refining system; in Livin’ La Vida Local, we highlighted how important U.S. exports of distillate — including diesel to Mexico — have become; and in Southbound we discussed how the opening up of Mexico’s energy markets to players other than Pemex is providing a range of opportunities to U.S. refiners.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
Mexico’s deregulation effort began in earnest four years ago this month, when (in December 2013) the government approved constitutional reforms that enabled the gradual dismantling of Pemex’s monopoly, which had been in place since 1938. More detailed follow-up legislation was enacted in August 2014, and since then (in fits and starts) Mexican and non-Mexican companies alike have been permitted to play an increasing role in hydrocarbon exploration and production, pipeline development and ownership, and — most recently — refined-products distribution, storage and retailing. Until April 2016, Pemex was the only entity that could import gasoline and diesel to Mexico, and until earlier this year (2017), independent/third-party importers could not use Pemex’s refined-product pipeline distribution and storage network. Also, between March 30 and November 30, long-standing government caps on retail prices of motor fuels were phased out across Mexico.
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About the song
“Into the Void” was written by Tony Iommi, Ozzy Osbourne, Geezer Butler and Bill Ward. It appears as the fourth song on side two of Black Sabbath’s third studio album, Master of Reality. The song is in the key of C#m (aka C-minor), a step and a half lower than the standard E tuning for guitars. The band employed this tuning for the first time on this album, giving it a heavier and darker sound. James Hetfield from Metallica has said “Into the Void” is his favorite Black Sabbath song. Eddie Van Halen noted the song’s main riff as a personal favorite. Void, the Washington, DC, punk band, took their name from the song. Personnel on the record were: Ozzy Osbourne (lead vocals), Tony Iommi (guitar), Geezer Butler (bass) and Bill Ward (drums).
Master of Reality was recorded between February and April 1971 at Island Studios in London. Produced by Rodger Bain, it was released in August 1971. It went to #8 on the Billboard 200 Albums chart and has been certified 2X Platinum by the Recording Industry Association of America. One single was released from the LP. Black Sabbath bassist Geezer Butler stated that “Children of the Grave” from Master of Reality was “the most kick-ass song we ever recorded.”
Black Sabbath was a British rock band formed in Birmingham, England, in 1968 by guitarist Tony Iommi, bassist Geezer Butler, drummer Bill Ward and vocalist Ozzy Osbourne. They are considered to be the founders of heavy metal music. The band released 19 studio albums, eight live albums, 13 compilation albums, three EPs and 37 singles and have sold more than 70 million records worldwide. They are members of the UK Music Hall of Fame and were inducted into the Rock and Roll Hall of Fame in 2006. Twenty-three members have passed through the band since its formation. Founding members Osbourne, Iommi and Butler released what would be their final studio album, 13, in 2015. Brad Wild drummed on the LP. They toured on their final The End tour with drummer Tommy Clufetes in 2016-17. In July 2025, the original lineup of Black Sabbath played their final show, Back to the Beginning, in their hometown of Birmingham. The concert featured several bands along with a solo set from Ozzy Osbourne. Osbourne passed away 17 days after the last note from Black Sabbath faded out from the concert.
Ozzy Osbourne (John Michael Osbourne) was an English heavy metal singer, songwriter and media personality who was nicknamed “The Prince of Darkness.” In addition to his work with Black Sabbath, he released 13 studio albums, five live albums, seven compilation albums, five EPs and 65 singles as a solo artist. Osbourne was inducted into the Rock and Roll Hall of Fame as a solo artist in 2024 and has a star on the Hollywood Walk of Fame. He and his wife, Sharon, started Ozzfest, a highly successful heavy metal festival that ran from 1996 to 2005. It drew more than 4 million people and grossed more than $170 million over its tenure. MTV ran the successful reality television show, The Osbournes, which featured Ozzy and his family, from 2002 to 2005. Osbourne left an undeniable imprint on heavy metal music and as a media superstar. We here at RBN are saddened by the recent passing of Ozzy Osbourne and send our condolences to his family, friends, loved ones, and fans.
