Energy trade value between Mexico and the United States fell in 2023 on lower fuel prices

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The value of all energy trade between the United States and Mexico decreased almost 15% from $77.8 billion in 2022 to $66.5 billion in 2023, adjusted for inflation. Lower fuel prices more than offset the increase in the volume of energy trade between the two countries. Energy trade value represents the total value of energy imports and exports between the two countries. It is influenced by both commodity prices and the volume of commodities imported and exported.

The value of inflation-adjusted U.S. energy exports to Mexico declined by 19% in 2023. The value of inflation-adjusted energy imports from Mexico decreased by 6% in 2023, according to data from the U.S. Census Bureau, which has been collecting this type of data since 1996.

Data source: U.S. Energy Information Administration, U.S. Imports by Country of Origin, Exports by Destination, U.S. Natural Gas Imports by Country, and U.S. Natural Gas Exports and Re-Exports by Country

Crude oil. In 2023, the United States imported more crude oil from Mexico and paid less per barrel than in 2022. U.S. crude oil imports from Mexico averaged 733,000 barrels per day (b/d), 15% more than in 2022. Global crude oil prices declined in 2023, with the Brent crude oil spot price averaging $82.41 per barrel (b) compared with $100.94/b in 2022. Despite the increased import volumes, the lower crude oil prices reduced the value of U.S. crude oil imports from Mexico by 4% in 2023 compared with 2022. U.S. crude oil imports made up 81% of all energy imports from Mexico in 2023. The United States did not export any crude oil to Mexico in 2023.

Petroleum products. In 2023, Mexico was the largest export market for U.S. petroleum products. Mexico has an aging refinery system and struggles to maintain the output needed to satisfy its domestic petroleum product demand. As a result, Mexico imports U.S. petroleum products such as gasoline, diesel fuel, and propane. Petroleum products accounted for 87% of the total energy exports from the United States to Mexico in 2023. U.S. petroleum product exports to Mexico averaged 1.2 million b/d in 2023, up 1% from 2022. Although the volume of exports increased, the value of U.S. petroleum product exports decreased by 9% when adjusted for inflation, dropping to $36 billion in 2023 from $40 billion in 2022.

Natural gas. Natural gas trade mostly consists of pipeline shipments from the United States to Mexico. The United States exported a record amount of natural gas in 2023: 6.2 billion cubic feet per day, or 8% more than in 2022. U.S. natural gas exports to Mexico represented 13% of all U.S. energy exports to Mexico for the year. Due to lower prices, the trade value of natural gas in 2023 decreased by 52% from 2022.

Electricity. The United States and Mexico trade a small amount of electricity, primarily into California, New Mexico, and Texas where transmission lines cross the U.S.-Mexico border. In 2023, only 0.14% of U.S. electricity consumption came from Mexico. During that year, U.S. electricity imports from Mexico increased by 20% from 2022 to 5.7 terawatthours (TWh), while U.S. electricity exports to Mexico decreased by 65% to 1.8 TWh, resulting in a net trade deficit of 3.9 TWh.

Principal contributors: Matias Arnal, Sean Hill

Tags: natural gas, electricity, international, prices, exports/imports, United States, liquid fuels, crude oil, oil/petroleum, Mexico, petroleum products